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Government borrowing worst October figure in six years | |
(35 minutes later) | |
Public sector net borrowing (PSNB) rose £1.1bn compared with the same month a year ago to £8.2bn, the Office for National Statistics (ONS) said. | |
The government has now borrowed £54.3bn so far this year and is making slow progress on reaching its annual target. | |
The Office for Budget Responsibility (OBR) forecast borrowing of £69.5bn against £90.1bn a year ago. | |
The Treasury said the figures showed the job of rebalancing the economic was " not yet done". | |
It added that "government borrowing remains too high". | |
It means the Chancellor George Osborne will need to restrict borrowing to just £15bn between now and April in order to meet his target. | |
While not impossible - January usually sees a surplus thanks to an influx of self-assessment income tax receipts - it remains unlikely that the chancellor could meet his borrowing target without severe cuts at next week's Autumn Statement. | |
The latest borrowing figures will raise expectations that the OBR will be forced to raise its forecast for government borrowing this year. | |
Time? | |
Economists have for some time been warning the Treasury looked set to miss its target this year. | |
Last month, Vicky Redwood at Capital Economics said: "If the current trend continues, borrowing in 2015-16 as a whole will come in at about £78bn, much lower than 2014-15's total. | |
"Admittedly, this would be above the OBR's forecast... but there is still plenty of the fiscal year to go. So there's no need for the chancellor to panic yet." | "Admittedly, this would be above the OBR's forecast... but there is still plenty of the fiscal year to go. So there's no need for the chancellor to panic yet." |
Howard Archer chief UK and European economist at IHS Global Insight said: "George Osborne now has an almighty task to meet his fiscal targets for 2015/16. | |
" Indeed, if the pattern of the first seven months of the fiscal year continued, PSNB would amount to £80.3bn in 2015/16, which would mean that Mr. Osborne would overshoot by some £11bn the target of £69.5 billion contained in his July budget." | |
Government borrowing in the 12 months to October stood at £70bn taking the total national debt now to £1.5 trillion, or 80.5% of the UK's annual economic output |