MNI DATA IMPACT: UK Oct Borrowing Soars; Corporate Taxes Ebb>

By Irene Prihoda and Laurie Laird

     LONDON (MNI) - The UK fiscal position deteriorated dramatically in 

October, as government spending on staff and services skyrocketed, while 

corporate tax receipts continued to deteriorate. 

     The following are the key points from public sector finance data 

published Thursday by the Office for National Statistics.

     - Borrowing jumped Stg11.206 billion last month, the highest 

October outturn in five years, far outpacing the Bloomberg median 

forecast of Stg9.4 billion.

     - Fiscal outlays rose dramatically, with spending on goods and 

services increasing by Stg1.1 billion over October of 2018 to Stg13.218 

billion, the highest October on record. Spending on staff jumped by 

Stg1.0 billion to Stg11.853 billion, the highest on record for any 

calendar month. 

     - A National Statistics official could not comment on whether the 

increased government spending is related to Brexit preparations, but did 

point out that teachers previously employed by local authorities have 

come onto the federal government payroll as state schools transform into 

academies. 

     - Corporate tax receipts continued to disappoint, falling by 6.0% 

in October, the biggest fall for the month since 2015. Over the year to 

date, corporate tax receipts have declined by 2.1%, the sharpest 

decline since 2011. 

     - Total borrowing between April and October jumped by 10.3% to 

Stg46.3 billion, well ahead of the unrevised Office of Budget 

Responsibility target of Stg29.3 billion.  

     - The OBR has estimated that new treatment of student loans, 

introduced in September, could add Stg11.2 billion to full-year 

borrowing, although the cabinet secretary has prohibited the OBR from 

publishing its updated estimates until after the election on 12 

December. 

     - Value-Added-Tax receipts continue to hold up, rising by 4.4% in 

October and by 3.3% over the fiscal year to date. 

     - Central government net cash requirement year-to-date soared to 

stg33.0 billion from stg15.7 billion in the same period last year, a 

rise of stg 109.9%.

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

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