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Government borrowing worst October figure in six years | Government borrowing worst October figure in six years |
(35 minutes later) | |
Public sector net borrowing (PSNB) rose £1.1bn in October compared with the same month a year ago to £8.2bn, official figures show. | |
That is the highest level of borrowing in October in six years. | |
The government has borrowed £54.3bn so far this year and is making slow progress on meeting the Office for Budget Responsibility's (OBR) forecast. | |
These figures mean Chancellor George Osborne will need to restrict borrowing to just £15bn between now and April. | |
While not impossible - January usually sees a surplus thanks to an influx of self-assessment income tax receipts - it remains unlikely that the chancellor will meet the £69.5bn OBR forecast without severe cuts at next week's Autumn Statement. | |
The previous annual borrowing figure was £90.1bn. | |
The Treasury said the figures showed the job of rebalancing the economy was "not yet done". | |
It added that "government borrowing remains too high". | It added that "government borrowing remains too high". |
Borrowing warnings | |
Many economists say the Treasury has no hope of meeting the OBR's forecast for this year. | |
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. | 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." | |
Ruth Miller, UK economist at Capital Economics, is also forecasting borrowing this year of £80.3bn and says today's figures leave the Chancellor "with less room for manoeuvre" in next week's Autumn Statement. | |
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 | 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 |