Borrowing figures: Forex fines on banks help cut Britain’s public finance deficit

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Official figures showed November’s net borrowing was £14.1 billion —  £1.6 billion below a year ago. Borrowing for the eight months of the current financial year is running at £75.8 billion, £478 million lower than last year.

The forex fines will prove a temporary boost to the Treasury’s coffers as Chancellor George Osborne has already earmarked the cash to improve GP surgeries. But revisions to previous data — including lower capital spending — improved the overall picture while economists also noted a stronger tax take. Income-tax receipts were up 4.1% year on year to £10.9 billion over the month, while VAT takings rose 2.8% to £10.4 billion.

January should, meanwhile, bring a windfall in self-assessment income-tax receipts, although experts suggested the Chancellor might still struggle to hit the Office for Budget Responsibility’s recently revised borrowing target of £91.3 billion for the full year.

Capital Economics’ Samuel Tombs said borrowing for the last four months of the year would have to be 27% below last year.

He added: “While November’s public-finance figures are a step in the right direction, the road to fiscal sustainability look set to be long and bumpy.”

Source Article from http://www.standard.co.uk/business/business-news/forex-fines-on-banks-help-cut-britains-public-finance-deficit-9935618.html

December 20, 2014 |
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