MNI 5 Things: Sep UK Borrowing Falls Marginally Ahead Budget

By Laurie Laird, Jamie Satchi and Jai Lakhani

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

borrowing data published Friday by the Office for National Statistics.

     - Public sector borrowing fell to its lowest September level in 11 years,

leaving year-to-date borrowing down 30.5% at Stg19.9 billion, the lowest level

since 2002/03.

     - Underneath the headline level, a worrying trend is appearing. In the

first four months of the fiscal year the average year-ago undershoot was a

healthy stg2.8bn but over the last two this has turned to an average stg221

million overshoot.

     - As the improvement in the government's borrowing position slows --

year-to-date borrowing was down by as much as 40% as recently as July --

Chancellor of the Exchequer Philip Hammond faces a dilemma ahead of a crucial

budget statement at month end.

     - The buoyant labour market lifted PAYE receipts by Stg700 million in the

month of September, boosting income and capital gains taxes by 7.2% year-to-date

to Stg5.8 billion.

     - However, uncertainty over Brexit seems to be dampening corporate tax

receipts, which fell slightly in September. Over the fiscal year, corporate

taxes are up by just Stg300 million, the weakest growth since 2013.

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

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