Tuesday, September 21, 2010
Public borrowing disappoints
Posted by David Smith at 09:45 AM
Category: Thoughts and responses

For the coalition government, keen to emphasise that there is no alternative to tax hikes and spending cuts, too rapid an improvement in the public finances could have been an embarrassment. The August figures show that you should be careful what you wish for.

Public sector net borrowing excluding financial interventions was 15.9 billion in August, up from 14.1 billion in August 2009. The improvement in year-on-year comparisons has come to an end, for now at least. The current budget deficit was 13.1 billion, up from 11 billion in August 2009. Cumulative net borrowing for the first five months of the fiscal year, 58.1 billion, was only marginally lower than the 2009-10 equivalent of 61.9 billion. More here.