This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at http://www.bbc.co.uk/news/business-34877455
The article has changed 6 times. There is an RSS feed of changes available.
| Version 3 | Version 4 |
|---|---|
| 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. | 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. | 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. | 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. | 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. | 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 previous annual borrowing figure was £90.1bn. |
| The Treasury said the figures showed the job of rebalancing the economy was "not yet done". | 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". |
| Analysis: BBC economics correspondent Andy Verity | |
| So you thought we were living in a time of austerity. Yet the question is increasingly - austerity for whom? | |
| The Treasury's acknowledged that government borrowing "remains too high". | |
| Even ignoring the fact that it was the worst October for the public finances since 2009 (which could be down to statistical blips) the government had to borrow £54.3bn from April to October to plug the gap between its income and its spending. | |
| If George Osborne is to achieve his goal of borrowing no more than £69.5bn for the whole financial year, there isn't much headroom left for the remaining five months. | |
| It's highly likely that the Office for Budget Responsibility will have to relax its forecast at next week's Autumn Statement. | |
| The fact that the budget deficit is falling at all is not because of reduced spending but because of increased tax receipts. | |
| From April to October central government spending rose by 1.1% to £402.6bn. | |
| A big part of the reason for that was that the government has exempted the health budget from austerity. | |
| It is also raising the basic state pension by a minimum of 2.5% a year - even when inflation is negative. | |
| Overwhelmingly, the beneficiaries of those exemptions are members of the older generation. | |
| By contrast, those who bear the brunt of the planned tax credit and benefit cuts will be people of working age. | |
| Borrowing warnings | Borrowing warnings |
| Many economists say the Treasury has no hope of meeting the OBR's forecast for this year. | 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." | "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. | 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. | |
| John Hawksworth, PwC's chief economist, said the borrowing figures were "a little disappointing for the Chancellor". | |
| "Our estimates based on simple extrapolation from these data suggest that public borrowing could overshoot the OBR target by around £5bn this year," he said. |