Unemployment (and probably people entering education) has dented tax revenues. The August figures for the UK's public sector net borrowing totalled £16.1bn, contrasts with £9.9bn a year back. Overall debt is 57.5% of GDP, a sum of £804.8bn. £140bn is due to banking sector bailouts. This news has sent the pound to a four-month low versus the euro (1 euro is equivalent to 90p). The weakest the pound has been versus the euro was 97p (reached on December 30, 2008) i.e. parity.
Around Sept,Oct2008 (Lehman crisis) the euro was trading around 80p to the pound, fairly stable. Then from November, it went to 85 on its way to 95.
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