MNI DATA IMPACT: UK Borrowing Soars on Interest Payments>

By Laurie Laird and Shaily Mittal

     LONDON (MNI) - UK government borrowing soared in June, largely 

lifted by increased payments on index-linked debt.

     The following are the key points from UK Public Sector Finance data 

published Friday by the Office for National Statistics. 

     - Borrowing jumped to Stg7.152 billion last month, far outpacing 

the MNI median forecast, from Stg3.332 billion a year earlier.

     - Interest payments on index-linked debt ballooned by 42.2% over 

June 2018, due to fluctuations in the RPI. 

     - Corporate tax receipts continue to disappoint, falling by 1.0% 

in June, the worst June performance since 2013. 

     - Value-Added Tax receipts were also weak, rising by 1.2% in June 

to Stg12.8 billion, the slowest pace since June 2009.

     - Year-to-date borrowing surged by 33.2% to Stg17.9 billion, and 

the Office for Budget Responsibility has warned of a more dramatic 

increase in the event of a no-deal Brexit.

     - Borrowing in 2018/19 was revised slightly lower to Stg23.5 

billion from the Stg24.0 billion reported last month. 

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

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