MNI DATA ANALYSIS: Dec Borrowing Up; OBR Target in Peril>

-UK Dec borrowing Stg2.976bn vs Stg2.674bn Dec 2017

-UK YTD borrowing -26.7% to Stg35.9bn vs OBR target of Stg25.5bn

By Laurie Laird and Jai Lakhani

     London (MNI) - UK public borrowing rose in December, lifted by 

accounting for contributions to the European Union, leaving the Treasury 

with a challenge to meet its targets, despite a sharp fall in 

year-to-date borrowing. 

     December borrowing, excluding the Bank of England, rose to Stg2.976 

billion, abov analysts' forecast of Stg1.9 billion, the highest for the 

month of December since 2016, compared to Stg2.674 billion a year 

earlier. 

     The government's borrowing position was hampered by a smaller 

credit from the EU than received in December of 2017, leading to a 

deterioration of Stg1.5 billion this year. 

     Net debt fell to 75.4% of gross domestic product last month from 

76.5% in the same month of 2017. 

     Borrowing remains well below year-ago levels over the first nine 

months of the fiscal year, recording an annual decline of 36.7% over 

2017 to Stg35.9 billion.  However, borrowing was running as much as 40% 

below year-ago levels back in July.  Nonetheless, year-to-date borrowing 

stands at its lowest level since 2002, according to a National 

Statistics official. 

     But borrowing has already exceeded the new target set by the Office 

of Budget Responsibility for the full fiscal year, Stg25.5 billion.  The 

payment of self-assessment income tax receipts at the start of the 

calendar year tends to leave the government with a sizable surplus -- 

averaging Stg8.4 billion over the first two months in 2017 and 2018. 

     The central government net cash requirement rose to Stg18.221 

billion in December, from Stg18.590 billion a year earlier. 

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]