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UK public finances improve in October as economy grows | UK public finances improve in October as economy grows |
(35 minutes later) | |
The UK's public finances improved in October, as a recovering economy and housing market boosted tax revenues. | The UK's public finances improved in October, as a recovering economy and housing market boosted tax revenues. |
Borrowing, excluding the cost of interventions such as bank bailouts, fell to £8.08bn in October, down from £8.24bn in the same month last year, the Office for National Statistics (ONS) said. | Borrowing, excluding the cost of interventions such as bank bailouts, fell to £8.08bn in October, down from £8.24bn in the same month last year, the Office for National Statistics (ONS) said. |
The fall came despite the £2bn of shares sold in the flotation of Royal Mail not being included in the figures. | The fall came despite the £2bn of shares sold in the flotation of Royal Mail not being included in the figures. |
Total net public debt rose to £1.207tn. | Total net public debt rose to £1.207tn. |
This takes net public debt to 75.4% of gross domestic product (GDP), the highest percentage for the month of October on record. | This takes net public debt to 75.4% of gross domestic product (GDP), the highest percentage for the month of October on record. |
Boost | |
The government's target is to keep the 2013-14 public sector net borrowing requirement at £120bn or below, representing about 7.5% of GDP. | |
On current projections, it looks like this target will be easily achieved. | |
Seven months into the current 2013-14 tax year, the deficit, excluding the cost of bailouts and the effect of the Royal Mail pension transfer, was £64.8bn, down 8.2% compared to the same period last year. | |
In October, central government receipts reached £48.7bn, 3.2% higher than in the same month last year, as the recovering housing market helped to boost stamp duties by nearly 46%. | In October, central government receipts reached £48.7bn, 3.2% higher than in the same month last year, as the recovering housing market helped to boost stamp duties by nearly 46%. |
Howard Archer, chief UK and European economist at IHS Global Insight, said: "The October public finance data show further underlying improvement compared to a year ago, thereby providing more support to Chancellor George Osborne as he prepares his Autumn Statement for delivery on 5 December. | |
"Indeed, the chancellor must be feeling an awful lot happier about life now than when he was preparing his Autumn Statement last year." |