Friday, August 19, 2011
Still some worries over borrowing
Posted by David Smith at 03:30 PM
Category: Thoughts and responses

Though the July public borrowing figures were better than expected - net borrowing of 20m in comparison with 3.5 billion a year ago - the deficit is not improving as fast as hoped and there is work to be done in the remainder of the year. The Office fot Budget Responsibility, here, cites weaker than expected corporation tax receipts and income tax revenues, though hopes for stronger data later in the year.

So far, borrowing in the first four months of the the fiscal year is about 2.9 billion lower than a year earlier. The OBR's forecast is for a 20 billion full-year fall in borrowing, from 142.9 billion to 122 billion, so is looking for an improvement. Weaker growth projections aren't helping.