MNI DATA BRIEF: UK Full-Year Borrowing Highest On Record

UK full-year borrowing skyrocketed in March but full year borrowing still came in significantly short of the Office for Budget Responsibility expectations, the latest public sector finance report released by the Office for National Statistics showed.

Public sector borrowing rose to GBP303.144 billion in the 2020/21 financial year, the highest on record, taking the debt ratio to 97.7% of GDP, the highest since the 1962/63 fiscal year. That falls well short of the OBR's forecast of GBR355 billion, which includes GBP27.2 billion in Covid-related loan write offs not yet reflected in the ONS headline numbers. On a so-called like-for-like basis, borrowing fell short of the OBR target by GBR2.43 billion.

CGNCR (excluding Network Rail, NRAM and B&B) rose to GBP334.494 billion, the highest on record -- although well below the OBR's November expectations. Full-year borrowing rose to 14.5% of GDP, the highest since 1945/46. Despite a sharp fall in VAT and other taxes, income and capital gains taxes actually rose by GBP5.5 billion or by 2.7%, lifted by a GBP 4.3 billion (+2.6%) jump in PAYE taxes over the 2019/20 financial year.