MNI 5 Things: First Signs of Weakness in UK Borrowing Picture

By Jamie Satchi and Laurie Laird

     LONDON (MNI) - The following are the key points from the ONS' public sector

finances data published Friday by the Office for National Statistics.

     --The dramatic reduction in borrowing came to abrupt halt in August, as it

unexpectedly rose to Stg6.753 billion from Stg4.4345 billion.

     --August's deficit was stg2.408bn higher than its respective year-ago

measure. That's not only the first y/y borrowing overshoot since February this

year but the biggest since May 2012 (stg3.587bn) and follows a gentle decline in

the undershoot in recent months.

     --However, year-to-date borrowing remains 30.5% below 2017 levels, and well

on track to meet OBR forecasts, piling the pressure on the Treasury to loosen

the purse strings in the November budget.

     --The UK paid stg1.0bn to the EU in August, some stg0.6bn more than a year

ago but in line with the levels recorded in 2016. Last August, contributions

were unusually low due to an EU Budget surplus distributed to member states.

     --Corporate tax receipts have disappointed in 2018, although National

Statistics officials saw "no economic story" in the Stg300 billion fall in

August.

     --Year to date, corporate tax receipts have matched the 2017 outturn of

Stg25 billion, the weakest growth since 2013, according to the ONS official.

--MNI London Bureau; +44 203-586-2226; email: jamie.satchithanantham@marketnews.com

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,MAUDR$,MAUDS$,M$B$$$,M$E$$$,M$U$$$]