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Government borrowing falls in December | Government borrowing falls in December |
(35 minutes later) | |
Government borrowing fell by £0.4bn in December to £6.9bn, compared with 2015. | Government borrowing fell by £0.4bn in December to £6.9bn, compared with 2015. |
The figures, from the Office for National Statistics, means borrowing for the year is £63.8bn, £10.6bn lower than for the same period a year ago. | The figures, from the Office for National Statistics, means borrowing for the year is £63.8bn, £10.6bn lower than for the same period a year ago. |
The last Autumn Statement indicated that the government would borrow £68bn over the full financial year to the end of April. | The last Autumn Statement indicated that the government would borrow £68bn over the full financial year to the end of April. |
The government typically receives more money than it spends in January, when a high number of tax bills are paid. | The government typically receives more money than it spends in January, when a high number of tax bills are paid. |
The ONS revised the borrowing figure for November down from £12.6bn to £11.3bn, which will help the Chancellor, Phillip Hammond, to keep to the Autumn Statement target. | The ONS revised the borrowing figure for November down from £12.6bn to £11.3bn, which will help the Chancellor, Phillip Hammond, to keep to the Autumn Statement target. |
However, even if he meets it, the total will still represent about 3.5% of economic output. | However, even if he meets it, the total will still represent about 3.5% of economic output. |
Budget balancing | |
A spokesman for the Treasury said the government had made "significant progress in repairing the public finances" by pushing down the deficit from 10% of GDP six years ago to 4%. | A spokesman for the Treasury said the government had made "significant progress in repairing the public finances" by pushing down the deficit from 10% of GDP six years ago to 4%. |
Later on Tuesday, Mr Hammond will present an updated Charter for Budget Responsibility, setting out his new fiscal rules to bring the public finances back to balance. | Later on Tuesday, Mr Hammond will present an updated Charter for Budget Responsibility, setting out his new fiscal rules to bring the public finances back to balance. |
The government has abandoned the previous chancellor's aim of balancing the budget by 2020. | The government has abandoned the previous chancellor's aim of balancing the budget by 2020. |
"The continued, albeit modest, monthly declines in public sector borrowing are encouraging and mean that the government remains on course to meet the [Office for Budget Responsibility]'s forecast for 2016-17, as set out in the Autumn Statement," said Suren Thiru, head of economics at the British Chambers of Commerce. | |
"The UK's fiscal position, which was weakened significantly by the financial crisis, is likely to come under increasing pressure in the near term if UK economic growth weakens as expected. | |
"A slowing economy would further restrict the UK's capacity to collect enough tax revenue to consistently achieve deficit reduction in the coming years." |