play_arrow

keyboard_arrow_right

skip_previous play_arrow skip_next
00:00 00:00
playlist_play chevron_left
chevron_left
  • play_arrow

    DukeBox UK DukeBox UK

  • cover play_arrow

    Outside The Box #6 - Outstanding Arsenal and Hamilton the History-Maker Duke Box

News

Government borrowing falls but at a slower rate

todayNovember 19, 2021 4

Background
share close

Government borrowing falls but at a slower rate

Public sector net borrowing was £18.8 billion in October

Government borrowing continued to fall as the Treasury saw an increase in tax receipts and a fall in expenses, although the speed of the falls slowed by comparison to previous months, according to official figures.

The Office for National Statistics (ONS) said public sector net borrowing was £18.8 billion in October, down £200 million on the same month last year.

However, this remains the second-highest October for borrowing since records began in 1993. The highest was a year ago.

The data shows that borrowing so far this financial year has been £127.3 billion – £103.4 billion less than the same period a year ago, as numerous Covid-19 support packages start winding down.

Public sector net debt now stands at £2.28 trillion at the end of October – or around 95.1% of gross domestic product (GDP) – maintaining levels not seen since the early 1960s.

Central Government receipts stood at £65.5 billion, up £3.8 billion on October 2020, whilst central Government bodies spent £78.8 billion – up £1.5 billion from October a year ago.

But interest payments on debt remain high, with £5.6 billion paid out in October versus £1.8 billion a year earlier.

Chancellor Rishi Sunak said: “The unprecedented support that the Government provided throughout the pandemic protected millions of jobs and businesses, but also left us with much higher public debt.

“It is right that we now strengthen our public finances for future generations – so at the Budget last month I set out new fiscal rules which will keep debt on a sustainable path in the years to come.”

But Samuel Tombs, chief UK economist at Pantheon Macroeconomics, pointed out: “Public borrowing is falling much less quickly than earlier this year, reflecting the slowing of the economic recovery and the pick-up in inflation, which determines interest payments on index-linked gilts.

“Borrowing was just £0.2 billion lower than a year ago in October, compared to a drop of £8.2 billion in September and an average decline of £17.2 billion in the first half of this fiscal year.”

Published: by Radio NewsHub

Written by: admin

Rate it

Previous post

News

Charles cancels HMS Queen Elizabeth tour after F35 jet crash

The jets are operated by the renowned 617 Squadron, also known as the “Dambusters” squadron The Prince of Wales’ visit to a UK aircraft carrier has been cancelled just a few days after a jet from the warship crashed in the Mediterranean. Charles was due to tour HMS Queen Elizabeth during the final day of his tour of Egypt, but a few hours before the event his office Clarence House […]

todayNovember 19, 2021 6

0%