Tejvan Pettinger - Economics Help

Where does all the government spending go?

13 June 2025 by Tejvan Pettinger

Why is there No Money Left?Watch this video on YouTube Last July, the new Chancellor Rachel Reeves, announced winter fuel payments for pensioners would be means tested. She hoped this brave and bold decision to stabilise Britain’s finances would be welcomed as a sign Labour were a serious government full of serious people. Labour Ministers …

UK Budget Deficit

2 July 202512 June 2025 by Tejvan Pettinger

The budget deficit is the annual amount the government has to borrow to meet the shortfall between current receipts (tax) and government spending.
Net borrowing for the UK 2021/11 is £151.8bn or 14.8% of GDP [OBR – J511]
National debt or public sector net debt – is the total amount the government owes – accumulated over many years. See: UK national debt (May, 2022 – £2,347.7 billion equivalent to 95.% of GDP)

UK Borrowing

Budget deficit – annual borrowing

This is the amount the government has to borrow per year.

In 2000/01, the UK ran a budget surplus of £17bn or 1.7% of GDP
In 2009/10 at the height of the great recession net borrowing was £152 bn or 10% of GDP

UK net borrowing

View: Latest statistics at OBR

UK House Prices are Rising: How Long Will it Last?

6 June 2025 by Tejvan Pettinger

In the past 12 months, UK house prices have once again started to rise, with house price inflation reaching 6%. Even the end of stamp duty in April, did not prevent prices rising by £3,000 in May, according to the Nationwide. It means prices have regained their previous peak of 2022. However, the rise …

Warnings of Financial Crisis 2025

4 June 2025 by Tejvan Pettinger

Since the start of the year the dollar has fallen 9%. The global reserve currency is under pressure. (BTW: real problem in Japan was 30 and 40 year bonds) Yet at the same time, bond yields are rising creating a headache for the government and financial system. In Japan, the recent surge in bond …

The 1980s The Decade That Divided Britain

2 June 2025 by Tejvan Pettinger

The 1980s was a decade of divides. The proud industrial heartlands of the north suffering irreversible decline. The City of London enjoying an unprecedented boom. In the early 80s, Unemployment soared to the highest level since the Great Depression, manufacturing fell off a cliff. But not everyone suffered in the 80s. Financial liberalisation and tax …

Could UK Economy Make An Unexpectedly Strong Recovery?

28 May 2025 by Tejvan Pettinger

People often observe my videos/articles on the UK economy tend to be doom and gloom, this is partly the youtube alogorithm, but mainly because the UK economy really hasn’t been doing very well, whether you look at average wages, productivity or housing costs, it’s pretty grim and you can’t change these facts. And there is …

Why are Bond Yields Rising Everywhere?

27 May 2025 by Tejvan Pettinger

Why are Bond Yields RISING FAST Everywhere?Watch this video on YouTube For decades, Japan had artificially low interest rates, but since 2022, bond yields have risen, and the pace of increase is getting steeper. And when you have debt at 270% of GDP, this is a big deal. Japan has a double crisis – rising …

How Soros Broke Bank of England and Effect on Economy

25 May 2025 by Tejvan Pettinger

On Wednesday 16 September 1992, the UK economy was in deep recession, with unemployment of 10% interest rates of 10%, and the Pound was struggling to maintain its value against the D-Mark. As soon as markets opened, financial investors piled in to sell pounds to a beleaguered government, and Sterling fell, reaching the floor of …