Stay up to date with notifications from The Independent

Notifications can be managed in browser preferences.

David Prosser's Outlook: Between the Rock and a hard place

Wednesday 21 May 2008 19:00 EDT
Comments

Your support helps us to tell the story

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference.

A rare piece of good news for Alistair Darling, the unluckiest Chancellor in living memory. Yesterday's public finances figures suggest the Treasury has been managing taxation and spending rather better than many economists had thought. As a result, public sector net debt remains below 37 per cent of GDP, well within the Government's sustainable investment rule, which sets a 40 per cent limit.

The Office for National Statistics did point out, however, that it still has not moved Northern Rock's debt into the public sector accounts, despite the mortgage bank's nationalisation earlier this year. It added that its preliminary estimates of the effect of doing so would push the magic figure up to 43.1 per cent.

Not to worry, of course, since Mr Darling has already said he won't take Rock into account when checking for compliance with the sustainable investment rule, since it will only be a temporary liability.

In that context, the testimony of Ron Sandler to the Treasury Select Committee this week must have been something of an irritation. Mr Sandler, the Government's man in Newcastle, warned that Rock's contribution to the red side of the public accounts could be less temporary than planned if house prices keep falling at the current rate.

Join our commenting forum

Join thought-provoking conversations, follow other Independent readers and see their replies

Comments

Thank you for registering

Please refresh the page or navigate to another page on the site to be automatically logged inPlease refresh your browser to be logged in