MNI DATA ANALYSIS: UK 2017/18 Borrowing Revised Lower>

-UK 2017/18 FY Borrowing Stg40.5bn from Stg42.6bn previous

-UK April borrowing Stg7.840 billion, lowest April since 2008

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - UK public borrowing fell below initial estimates in 

fiscal 2017/18, and the declining trend continued into the current 

financial year, with April borrowing hitting its lowest since 2008. 

     Borrowing for the year ended in April was revised downward to 

Stg40.5 billion, down from the Stg42.6 billion reported last month. That 

represents a 12.3% fall over the previous fiscal year to the lowest 

full-year level since 2006/07 and brings borrowing well below the target 

set by the Office for Budget Responsibility of Stg45.2 billion. 

     The improved outturn was largely due to an decrease in government 

expenditure, particularly grants to the private sector, gross capital 

formation and transfers to local government. 

     On the revenue raising side, corporation tax receipts were revised 

upward by Stg600 million, while value-added-tax receipts were Stg100 

million higher than originally reports. 

     However, the downward revision in borrowing did not alter the 

government's full-year borrowing ratio of 76.3%, unchanged from the 

previous report. 

     April borrowing, excluding the Bank of England, fell to Stg7.840 

billion, below the MNI median forecast of Stg8.5 billion, down from 

Stg8.953 billion a year earlier. 

     Net debt fell to 75.8% of gross domestic product in April, from 

78.6% in the same month of 2017. 

     The government's so-called sugar tax on manufacturers of sweetened 

drinks raised just Stg13 million after coming into effect on April 6. 

The government is hoping to raise Stg240 million a year through the new 

levy. 

     The central government net cash requirement hit -Stg6.119 billion 

in April, from -Stg15.419 billion a year earlier.  

     The current budget deficit rose fell to Stg5.884 billion last 

month, from Stg7.233 billion a year earlier. 

     Including the Bank of England, public sector borrowing fell to 

Stg6.230 billion in April from Stg7.342 billion last year. 

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

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