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-29324751

The article has changed 4 times. There is an RSS feed of changes available.

Version 1 Version 2
Public borrowing at £11.6bn in August Public borrowing at £11.6bn in August
(about 1 hour later)
Government borrowing remained high in August, hampering the chancellor's efforts to reduce the public deficit, official figures show.Government borrowing remained high in August, hampering the chancellor's efforts to reduce the public deficit, official figures show.
The Office of National Statistics (ONS) said public sector net borrowing stood at £11.6bn last month.The Office of National Statistics (ONS) said public sector net borrowing stood at £11.6bn last month.
Total borrowing for this year stands at £45.4bn, some 6.2% higher than at the same time a year earlier.Total borrowing for this year stands at £45.4bn, some 6.2% higher than at the same time a year earlier.
However, comparisons are difficult because of changes to the methodology this month.However, comparisons are difficult because of changes to the methodology this month.
The latest figures are designed to meet EU standards and include financial sector interventions that were left out in the old figures.The latest figures are designed to meet EU standards and include financial sector interventions that were left out in the old figures.
As part of the changes, Network Rail has been moved from the private sector into the public sector.As part of the changes, Network Rail has been moved from the private sector into the public sector.
On the old basis, the figure would have been £12.5bn, up from £11.5bn in August 2013.On the old basis, the figure would have been £12.5bn, up from £11.5bn in August 2013.
'Slow process'
Economists have spoken of a "taxless" recovery that has made it harder for Mr Osborne to balance the books.Economists have spoken of a "taxless" recovery that has made it harder for Mr Osborne to balance the books.
This refers to the fact that receipts from income tax have not been rising as much as the government would have hoped, despite rises in the number of people in work, because pay rises have been meagre for many.This refers to the fact that receipts from income tax have not been rising as much as the government would have hoped, despite rises in the number of people in work, because pay rises have been meagre for many.
August continued this trend, with income tax receipts and social security payments growing just 1.6% from the previous year.August continued this trend, with income tax receipts and social security payments growing just 1.6% from the previous year.
For the tax year so far, the amount has been 0.6% lower than in the same period a year earlier.For the tax year so far, the amount has been 0.6% lower than in the same period a year earlier.
"August's public finances data suggest that deficit reduction remains a grindingly slow process," said Martin Beck, senior economic adviser to the EY Item Club.
"The chances of the chancellor enjoying a fiscal windfall from the strong economic recovery in time for the Autumn Statement are looking increasingly slim.
"Rather than being in a position to offer some tax or spending sweeteners to kick in before next May's general election, he may be faced with the unpalatable choice of announcing further fiscal tightening or a slippage of deficit reduction plans."
David Kern, chief economist at the British Chambers of Commerce (BCC), said the deterioration in public finances was "disappointing" but not a huge surprise.
"The sharp fall in oil and gas output since the financial crisis, and the problems facing the UK financial sector, have both created a major hole in the UK's ability to generate tax revenues, even when economic growth improves," he added.