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Chancellor misses borrowing target | Chancellor misses borrowing target |
(35 minutes later) | |
The government borrowed £74bn in the year to March, £1.8bn more than George Osborne's borrowing target. | |
The Office for Budget Responsibility had forecast government borrowing of £72.2bn for the 2015-16 financial year. | |
However, the figures are subject to revision and the OBR said the true picture of the public finances was unlikely to be reflected in Thursday's numbers. | |
Public borrowing in March fell by £2.6bn from a year earlier to £4.8bn. | |
Public sector net debt, excluding public sector banks, jumped £47.5bn to £1,594bn for the year to the end of March - the equivalent to 83.5% of gross domestic product. | |
Surplus target | |
The annual borrowing figure of £74bn was £17.7bn less than the previous year, the Office for National Statistics said. | |
The decrease was mainly due to a fall of £20.4bn in central government net borrowing, although that was offset by a rise in local government borrowing of £4bn. | |
Borrowing by councils hit £5.9bn - mainly due to a fall in grants from central government. | |
Mr Osborne has pledged to return the UK to a budget surplus by 2020, with the OBR forecast predicting that the UK will have a surplus of £10.4bn in 2019-20 and £11bn the year after. | |
In a hearing after last month's Budget, OBR chairman Robert Chote told MPs there was still a 55% chance that Mr Osborne would hit his surplus target despite reversing a decision on disability payment cuts. | |
In a note, analysts at Capital Economics said: "We still think that the OBR's prognosis for the next five years is in fact too gloomy, meaning that austerity might be scaled back further ahead." |