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-41691656
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| Government borrowing at lowest September level for 10 years | Government borrowing at lowest September level for 10 years |
| (35 minutes later) | |
| Britain saw its smallest budget deficit for any September in the last 10 years, according to official figures. | Britain saw its smallest budget deficit for any September in the last 10 years, according to official figures. |
| Last month's deficit stood at £5.902bn, down almost 11% compared with the same month last year, the Office for National Statistics (ONS) said. | Last month's deficit stood at £5.902bn, down almost 11% compared with the same month last year, the Office for National Statistics (ONS) said. |
| With many economists having forecast a deficit of about £6.5bn, the news will be a boost for Chancellor Philip Hammond ahead of next month's Budget. | With many economists having forecast a deficit of about £6.5bn, the news will be a boost for Chancellor Philip Hammond ahead of next month's Budget. |
| The deficit for August was also revised down by about £1bn to £4.716bn | The deficit for August was also revised down by about £1bn to £4.716bn |
| September's figures marked the third straight month in which UK public finances were better than analysts had forecast. | September's figures marked the third straight month in which UK public finances were better than analysts had forecast. |
| The ONS said public sector net debt, excluding state-owned banks, had increased by £145.2bn since September last year to £1,785.3bn, equivalent to 87.2% of gross domestic product. | The ONS said public sector net debt, excluding state-owned banks, had increased by £145.2bn since September last year to £1,785.3bn, equivalent to 87.2% of gross domestic product. |
| A Treasury spokesman said: "Whilst we've made great progress getting the deficit down by over two thirds, government borrowing is still far too high at over £150m a day. | |
| "We will continue to take a balanced approach that deals with our debts and allows us to invest in our public services." | |
| Spending cuts | |
| The ONS said the lower borrowing in September was helped by stronger receipts from VAT, income and the stamp duty property tax, although corporation tax revenues were down slightly on a year ago. | |
| However, Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said lower borrowing was still predominantly driven by spending cuts, not a rebound in tax receipts. | |
| He said government spending rose by just 2.2% year-on-year in September, half the 4.4% increase anticipated by the Office for Budget Responsibility (OBR), which provides independent analysis on the UK's public finances. | |
| "By contrast, tax receipts increased by just 3.4% year-over-year in September, only a touch above the OBR's 2.7% full-year expectation and below the 3.8% average of the first five months of the fiscal year," Mr Tombs said. | |
| "The chancellor, therefore, is unlikely to soften the existing plans in next month's Budget enough to prevent the fiscal consolidation from intensifying next year," he said. | |
| The borrowing data would, however, bring "some cheer" for the chancellor ahead of the Budget, said John Hawksworth, chief economist at PwC. | |
| He said: "Both the half year borrowing total and the deficit in September alone were the lowest since before the financial crisis in 2007. | |
| "The 'black hole' that opened up in the UK public finances after the crisis has largely been filled, albeit at the cost of a much higher accumulated public debt stock." | |
| He said it should mean the chancellor can "find some extra money for priorities like housing and the NHS, but any giveaways are likely to be offset to a significant degree by fiscal take-backs". |