MNI BRIEF: UK Sept Borrowing Rises in Sept, YTD Down 48% y/y

UK public sector borrowing rose to GBP21.778 billion last month, from a downwardly-revised GBP16.824 billion in August (originally reported at GBP20.014 billion), according to data reported by the ONS on Thursday. That's still the second highest September on record, and remains sharply above the GBP6.067 billion recorded in the same month of 2019. Public sector debt steadied at 95.5% of GDP, matching the August outcome.

Over the first six months of the financial year, borrowing declined to GBP108.1 billion from GBP209.3 billion in 2020/21. VAT rose by 4.5% in the year to September to GBP12.5% billion, taking year-to-date receipts up by 16.4% over the same period of last year. Corporation tax rose by 11.3% last month to GBP4.7 billion and is up 20.5% in the financial year to date.

Government interest payments were slightly lower than September of 2020, falling to GBP4.8 billion, but remain 50.5% higher than 2020/21 at GBP32.7 billion.