Tuesday, October 20, 2009
Public borrowing marginally lower than feared
Posted by David Smith at 10:45 AM
Category: Thoughts and responses

The monthly horror show represented by Britain's public finance statistics turned out to be slightly less horrific than feared. Only slightly though. Net borrowing was 14.8 billion last month, slightly slower than the 15.5 billion consensus. The August figures were revised a little lower.

So far in the current fiscal year net borrowing is 77.3 billion, compared with 33.8 billion for the corresponding period of 2008-9. On a pro rata basis (comparing with last year) that would point to an overshoot of the Treasury's 175 billion forecast but there are good reasons to think there may be more front-loading than usual, particularly if VAT goes back up on January 1.

More details here. Public sector net debt is now 59% of GDP, 825 billion, including the cost of the banking rescues.