UK public sector borrowing higher than forecasts in June

| July 21, 2011 | 0 Comments

The Office for National Statistics (ONS) has today revealed UK public sector borrowing rose last month.

According to the ONS, public sector net borrowing rose to £14 billion last month compared with £13.6 billion June 2010.

The figure was higher than analysts’ expectations and was attributed to a fall in income tax receipts.

The figure excludes financial intervention such as bank bailouts.

The latest figures mean Chancellor George Osborne’s five-year deficit reduction plan could miss targets.

The Office for Budget Responsibility (OBR) is expecting public sector net borrowing to come in at £122 billion for the current tax year – lower than the £143 billion borrowed in the previous tax year.

However, the OBR’s figure is regarded as a challenging task by many analysts.

The independent OBR was set up by the coalition Government to assess the state of public finances.

However, a spokesperson for the Treasury said that the fiscal plans remain on target and are line with the OBR’s figures.

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