Tuesday, December 21, 2010
Record public borrowing
Posted by David Smith at 02:30 PM
Category: Thoughts and responses

Whichever way you look at them, the November public borrowing numbers were disappointing, with a record borrowing total - for any month - of £23.3 billion.

We think we've been living with the cuts since May but these figures suggest the government has yet to get to grips with spending. It is early days, with the cuts not scheduled to begin in earnest until April, but this will need watching. The January VAT hike should ensure this year's borrowing will be below 2009/10. It may not, however, be by much.

More details: "In November 2010, there was net borrowing (excluding financial interventions) of £23.3 billion, which compares with borrowing of £17.4 billion in November 2009.

"Public sector net borrowing (excluding financial interventions) was £104.4 billion in the year to date for 2010/11, down from £105.1 billion in the same period last year. The OBRís Economic and Fiscal Outlook (November 2010) forecast for 2010/11 is net borrowing of £149 billion.

"The current budget (excluding financial interventions) showed a deficit of £19.9 billion in November 2010, compared with a deficit of £14.0 billion in November 2009." The official release is here.