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UK government borrowing falls in December | UK government borrowing falls in December |
(35 minutes later) | |
The government borrowed £7.5bn in December, £4.3bn lower than the year before, official figures show. | The government borrowed £7.5bn in December, £4.3bn lower than the year before, official figures show. |
The figure takes borrowing for the financial year to date to £74.2bn, £11bn lower than at this point in 2014. | The figure takes borrowing for the financial year to date to £74.2bn, £11bn lower than at this point in 2014. |
The running total is already above the £68.9bn forecast for the whole fiscal year by the independent Office for Budget Responsibility. | |
However, the borrowing figure is set to fall back in January as a large number of tax bills are paid then. | |
In the 2014-15 financial year, borrowing was £90.1bn. | In the 2014-15 financial year, borrowing was £90.1bn. |
The latest borrowing figures mean total public sector net debt - excluding support for public sector banks - is now £1.54bn, or 81.0% of GDP. | |
Chancellor George Osborne's overall plan is to eliminate the annual gap between government spending and revenue by the end of this decade. | Chancellor George Osborne's overall plan is to eliminate the annual gap between government spending and revenue by the end of this decade. |
Target | |
Both October and November's monthly borrowing figures had been higher than expected, leading some economists to doubt that the OBR's borrowing forecast for the current financial year would be met. | |
This December's figure was lower than last year partly because last year the UK made a one-off payment to the European Union to reflect revised estimates to gross national income. | |
Paul Hollingsworth, UK economist at analysts Capital Economics said the chancellor still looked likely to miss the OBR's target: "Today's figures left the cumulative borrowing total for the fiscal year so far at £74.2bn, above the OBR's forecast of £68.9bn for the fiscal year as a whole. | |
"Granted, January typically sees a big surplus which should bring the total closer to this estimate. But borrowing still looks likely to overshoot the target this year, possibly by as much as £10.0bn." |