The litmus test for 'Our Georgie' at the Exchequer

I vaguely remember litmus tests during school chemistry lessons.  The litmus was either blue and turned red, or red and turned blue, can't remember exactly now.  Whatever, we may soon see what George Osborne's true colours are because according to The Mail, government borrowing is likely to be £20 billion less than was forecast.  Before you pop your corks, allow me to remind you that that still means our Chanceller, as he sits on the pavement with a bedraggled dog on his lap, shaking his empty cloth-cap under the noses of the international Shylocks, will still have begged, borrowed or stolen, a cool £100 billion this year.

The main reasons for the lower borrowing requirement this year are higher than expected corporation tax receipts plus a one-off bonus from flogging the Royal Mail.  The litmus test will take effect in a few weeks time when Osborne delivers the Autumn statement and you will instantly see whether he turns blue or red.  Our total borrowing today stands at around £1,300 billion, so a mere £20 billion isn't much but what he does with it will send all sorts of signals.  The best use, of course, would be to pay off more debt.  That might help the credit agencies put us back up to AAA standard which would lower our borrowing costs as the lenders would have more confidence.  Or, you could just blow it!  You know, some snazzy-jazzy special offers "for hardworking families" (who else?) which will make terrific headlines and help put Georgie back in the Treasury in 2015.

Sorry, there are absolutely no prizes for guessing - it's a no-brainer!

ADDITIONAL:  Damn!  Almost forgot the chance to use one of my favourite Shakespearean quotes:

            hence shall we see,                                                                                                  

If power change purpose, what our seemers be.

 

Comments

[Dom]

"Our total borrowing today stands at around £1,300 trillion ..."

Hmmmmm. Seems awfully high. Are you sure about that? That's more than 1 quadrillion.

[Dom]

But of course if you meant 1,300 billion, with a b, your point still holds.

[David Duff]

Oooops! Thanks for that correction, Dom, and thank God it wasn't DM who spotted it because that would have been roughly a trillion lines by five o'clock!

[backofanenvelope]

I expect you'll have more sympathy for Gordon Brown now! He always mixed up his zeroes - although usually in the other direction.

[David Duff]

Alas, BOE, I wouldn't feel any sympathy for Gordon Brown if he fell off the Empire State Building!

[Timbo]

Litmus mnemonic:
Red to blue, alkaloo; blue to red, asced
Close enough.

[David Duff]

Now look here, Timbo, you're supposed to test it not drink it!