Borrowing figures: Forex fines on banks help cut Britain’s public finance deficitComments Off on Borrowing figures: Forex fines on banks help cut Britain’s public finance deficit
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.”