**MNI 5 THINGS: UK Public Borrowing Falls On Year Ago Levels

--5 Things We Learned From the UK Public Sector Finances Data

By Laurie Laird and Jamie Satchithanantham

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

finances data pack published Wednesday by the Office for National Statistics.

     - Year-to-date borrowing continued to decline in relative terms, falling by

16% over the period of last year to stg37.7bn, extending the 11.7% fall in nine

months to December. The fall leaves the Treasury with chasing a

seemingly-obtainable full-year borrowing target of stg49.9bn.

     - The continuing decline in cumulative borrowing came despite an expected

softening in total self assessment and capital gains tax receipts, down to

stg18.4bn from a record high of stg19.3bn in January 2017. That's the second

highest total on record but the first decline in SA receipts since 2014.

     - As highlighted in the "5 Things To Look For" preview, VAT tax receipts

continued to rise, albeit at a slower pace than in recent months. VAT edged

higher by stg200mn to stg11.9bn, the highest January on record.

     - January's result meant that net debt fell to 75.9% of GDP from 78.9% a

year earlier, the lowest ratio since August of 2012. Net debt has been declining

since November when English Housing Association was transferred to the private

sector.

     - The steep fall in borrowing raises questions about the continuation of

fiscal austerity at a time of enhanced public concern about the provision of

government public services.

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

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