Public sector borrowing soars by £14.8bn in September
Figures from the Office for National Statistics (ONS) have revealed that public sector borrowing rose by £14.8 billion in September.
Net borrowing for the first half of the financial year now stands at £77.3 billion – the worst figure for the April to September period on record.
This may result in the Government having to review its forecast upwards to £200 billion, rather than the £175 billion it is predicting, according to many analysts.
Overall debt now stands at £824.8 billion – the equivalent of 59% of GDP. In May, credit rating agency, Standard and Poor’s, said the UK’s debt burden may reach 100% of GDP.
However, today’s figures were slightly lower than expected after economists had forecast that borrowing would come in at £15.3 billion for the month.
Commenting on today’s figures, Vicky Redwood from Capital Economics, said: “September’s public finance figures were marginally better than expected, but still suggest that the chancellor will have to revise his projections for public borrowing higher in the forthcoming pre-Budget report.”
Total spending stood at £45.7 billion during the month compared with just £35.4 billion in receipts.
The recession has meant tax revenues have been hit, as well as a severe hike in unemployment benefits.
Official figures last week showed that unemployment had risen in the three months to August to 2.47 million, albeit at a much slower rate.
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