MNI DATA IMPACT: UK Borrowing Rises, But Debt Ratio Declines>

By Les Commons and Laurie Laird

     LONDON (MNI) - Major adjustments to the time series have hit the 

UK government's borrowing position, but those same changes have reduced 

overall debt, thus reducing the ratio of debt to GDP.  

     The following are the key points from public sector finance data 

published Tuesday by the Office for National Statistics.

     -  Public sector borrowing was revised upward by St17.8 billion to 

Stg41.4 billion in the 2018/19 fiscal year, largely due to the addition 

of student loans to the government's balance sheet. Corrections to 

corporation tax added another Stg2.6 billion and a different treatment 

to pensions added Stg1.3 billion. 

     - However, the ratio of debt to GDP actually declined to 81.7% in 

the last financial year, from the previously-reported 83.1%, as the new 

treatment of pensions reduced government debt by Stg28.6 billion last 

year. 

     - Borrowing in the month of August fell slightly to Stg6.418 

billion from Stg6.917 billion, taking debt as a portion of GDP to 80.9%, 

from 82.4% a year earlier. 

     - Year-to-date borrowing is running 27.9% above the same period of 

2018. That's well below the 41.8% increase in the year to July, 

reported under the adjusted measures introduced this month. 

     - Corporate tax receipts declined by Stg100 million, leaving 

receipts slightly lower year-to-date, the first decline since the 

2013/14 fiscal year. 

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

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