MNI DATA ANALYSIS: Feb Public Borrowing Up; Income Tax Falls>

-UK Feb PSNBex Stg1.340 billion vs -Stg1.158 billion Feb 2017

-UK Year-To-Date PSNBex -5.7% over 2016/17 to Stg41.4 billion

-UK Feb net debt ex BoE 75.8% of GDP vs 78.9% in February 2017

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - The UK public finances fell back into deficit in 

February, reversing a surplus in the same period in 2017, dramatically 

reducing the fall in year-to-date borrowing recorded last month. 

     Excluding public sector banks, government borrowing hit Stg1.340 

billion last month, compared to a surplus Stg1.158 billion in February 

of 2016, slightly above the MNI median forecast of Stg1.1 billion in 

borrowing. 

     That left net debt, excluding the Bank of England, at 75.8% of 

gross domestic product in February, down from 78.9% a year earlier and 

the lowest since August 2012. However, the debt ratio has been flattered 

this financial year by the shift of English Housing Association debt to 

the private sector. 

     Over the year to date, borrowing fell by 5.4% over the same period 

of 2016/17, to Stg41.4 billion, the lowest 11-month total since period 

ending in February of 2008.  However, that's a much more shallow decline 

than the 16.0% fall recorded in the year to January. 

     That leaves the Treasury with a challenge in hitting a borrowing 

target of Stg45.2 billion for the 2017/18 fiscal year, revised downward 

from Stg49.9 billion after Chancellor of the Exchequer Philip Hammond 

delivered his Spring Statement last week. 

     Income and capital gains taxes fell slightly to Stg20.4 billion in 

February. Over the January-February period, self-assessment tax receipts 

declined to Stg17.2 billion from Stg18.0 billion in 2017. 

     The central government net cash requirement hit -Stg2.016 billion 

in February, compared to -Stg3.965 billion in February of 2016. 

     Including public sector banks, the public sector finances hit a 

surplus of Stg272 million in February, smaller than the Stg2.770 

repayment recorded in the same period a year earlier. 

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

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