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

By Irene Prihoda and Laurie Laird

     LONDON (MNI) - The government's finances deteriorated markedly in 

September, with falling corporate tax receipts and increasing 

government spending likely to add to borrowing in months to come.  

     The following are the key points from public sector finance data 

published Tuesday by the Office for National Statistics.

     - April-to-September borrowing rose by 21.6% over the same period 

of 2018, already hitting rough OBR estimates of full-year borrowing.

     - The initial OBR 2019/20 borrowing forecast of Stg29.3 billion 

did not include adjustment for student loan outlays, which the OBR 

believes will add Stg11.4 billion to full-year borrowing for a total of 

Stg40.7 billion 

     - Total government spending rose dramatically in September, despite 

a Stg500m decrease in index-linked interest payments.  Net social 

benefits increased by 3.2% to a record high Stg20.2 billion in 

non-inflation adjusted terms. 

     - So-called Other Government Spending surged by 7.1% in the year 

to September and by 5.4% year to date. Between April and September, the 

government spent an extra Stg3.5 billion on staff and an additional 

Stg7.4 billion on goods and services. Statisticians were unable to say 

whether the increased outlay was related to Brexit preparations. 

     - Corporate tax receipts continued to disappoint, falling by 1.1% 

year to date, the biggest fall since 2013/14.  Weakness in business 

investment suggests a further softening of corporation tax receipts in 

months to come. 

     - Value-Added-Tax receipts remained buoyant, rising by 3.9% in 

September to Stg12.9 billion and by 3.7% in the financial year to 

Stg77.6 billion. 

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

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