MNI DATA ANALYSIS: UK YTD Borrowing Down; Jan Tax Take Falls>

-UK Jan PSNBex -Stg10.008 billion vs -Stg11.625 million Jan 2017

-UK Year-To-Date PSNB Ex -16.0% over 2016/17 to Stg37.7 billion

-UK January net debt ex BoE 75.9% of GDP vs 78.9% in January 2017

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - The UK public finances swung into surplus in 

January, despite a fall in self-assessment tax receipts, leaving 

year-to-date borrowing well below the same period of last year. 

     Excluding public sector banks, the government recorded a net 

surplus of Stg10.008 billion last month, from Stg11.625 billion in 

January of 2016, above the MNI median forecast of a Stg9.0 billion 

repayment. 

     That left net debt, excluding the Bank of England, at 75.9% of 

gross domestic product in January, down from 78.9% a year earlier, the 

lowest since August of 2012. The fall in net debt over recent months 

stems from the transfer of Stg66.5 billion in English Housing 

Association debt to the private sector back in November. 

     Over the year to date, borrowing fell by 16.0% over the same period 

of 2016/17, to Stg37.7 billion, the lowest 10-month total since fiscal 

2007/08. That's a greater decline than the 11.7% fall recorded a month 

ago. 

     That leaves the Treasury chasing a seemingly-obtainable borrowing 

target of Stg49.9 billion in the 2017/18 fiscal year, which could raise 

political questions about Chancellor Philip Hammond's commitment to 

austerity during a spell of increased public concern about the quality 

of government-provided services. 

     Self-Assessment tax receipts fell to Stg18.4 billion from the 

record-high of Stg19.3 billion a year earlier, the first decline since 

2014, but still the second highest January on record.   

     However, Value Added Tax receipts rose by Stg200 million, a slower 

rise than recorded in previous months, to Stg11.9 billion, but the 

highest-ever for the month of January. 

     The central government net cash requirement hit -Stg27.714 billion 

in January, after reaching -27.859 billion in January of 2017. 

     Including public sector banks, the public sector borrowing swung to 

a surpluse of Stg11.620 billion in January, from Stg13.237 billion a 

year earlier. 

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