FTSE 100 slides as IFS warns UK borrowing will overshoot predictions by 2015
City Index February 6, 2013 10:15 PM
<p>The FTSE 100 has retreated as the IFS warns the UK’s borrowing will be more than expected by 2015.</p>
The FTSE 100 has lost ground in trading this afternoon (February 6th), after the Institute of Fiscal Studies (IFS) announced that the chancellor is borrowing more money despite planning for drastic cuts.
According to the IFS, the UK will have borrowed £64 billion more than anticipated by the time the next general election comes around, after weak growth damaged George Osborne's deficit reduction plan.
The UK's leading spending and tax authorities said today that public finances would also be in a worse state in 2015 than permitted under plans made by the previous Labour government to deal with the deficit.
IFS director Paul Johnson commented: "[Mr Osborne] is allowing borrowing to increase substantially in this parliament – allowing the automatic stabilisers to work – whilst promising another dramatic dose of public spending cuts in the next parliament."
At 15:10 GMT, the FTSE 100 slipped by 0.1 per cent to an index value of 6272.9 points.
Learn all about CFD trading strategies and the FTSE 100 at City Index.
GAIN Capital UK Limited (trading as “City Index”) is an execution-only service provider. This material, whether or not it states any opinions, is for general information purposes only and it does not take into account your personal circumstances or objectives. This material has been prepared using the thoughts and opinions of the author and these may change. However, City Index does not plan to provide further updates to any material once published and it is not under any obligation to keep this material up to date. This material is short term in nature and may only relate to facts and circumstances existing at a specific time or day. Nothing in this material is (or should be considered to be) financial, investment, legal, tax or other advice and no reliance should be placed on it.
No opinion given in this material constitutes a recommendation by City Index or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person. The material has not been prepared in accordance with legal requirements designed to promote the independence of investment research. Although City Index is not specifically prevented from dealing before providing this material, City Index does not seek to take advantage of the material prior to its dissemination. This material is not intended for distribution to, or use by, any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.