The UK’s government debt reconsidered

Moody’s recently warned the UK that “further macroeconomic or fiscal shocks” might jeopardise its AAA rating, and that “the government must stick to its deficit-reduction program.”

This is concerning since, as I’ve previously noted, George Osborne has very little room to manoeuvre when looking at overall government debt and revenue.

How did we get [...]

Looking at the UK’s revenue

Following up on my previous post about The UK’s deficit, I thought it might be useful to look at the revenue side in a little more detail.

The first chart shows revenue by source, while the chart to the right breaks down what is known as “Capital Tax”, effectively a tax on passive income. [...]

The UK’s delicate balancing act …

Standard and Poor’s recently reaffirmed the UK’s AAA rating, but with a caveat — “”The ratings could come under downward pressure if, against our expectations — and perhaps in response to weakening growth prospects — the coalition government’s commitment to fiscal consolidation falters,”

The chart above shows UK tax revenue, net debt and [...]