BULLET: UK Data: October Extends Overshooting Trend On.......>

UK Data: October Extends Overshooting Trend On Swelling Expenditure   

-UK October PSNBX Stg8.820bn Vs Stg7.235bn October 17  

-UK October Debt Ex-BOE 75.0% of GDP Versus 79.0% in October 2017 

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Borrowing (PSNBX) in October rose to stg8.8bn, the highest October for 

three years and markedly above analysts' expectations of stg6.1bn. 

Whilst government receipts remained relatively steady, higher 

expenditure drove the rise in borrowing. Debt interest payments were up 

by stg0.8bn over the year, driven by hihger RPI, whilst central 

government spending on goods and services was up by stg1.0bn over the 

same period. Net social benefits also increased by stg0.8bn versus 

October 2017. This left year-to-date borrowing at stg26.7bn, the lowest 

since 2005. Income tax and VAT receipts continue to show strength, up by 

2.6% and 3.3% on the year respectively. Year-to-date, corporation tax 

receipts were up 4.2% in Oct - the lowest growth in five years.