MNI DATA IMPACT: UK YTD Borrowing Higher, Above OBR FY Goal>

     LONDON (MNI) - A burst of government spending has lifted 

year-to-date borrowing well above the full-year target, even ahead of a 

dose of government largesse expected in the March budget. 

     The following are the key points from public sector finance data 

published Wednesday by the Office for National Statistics.

     - The UK's financial position has deteriorated markedly in the 

current financial year, courtesy of 5.0% surge in government spending 

on goods and services, the biggest year-to-date increase since records 

began in 1997. 

     - Borrowing has increased by 7.9% over the first nine months of 

the fiscal year to GBP54.6 billion, far exceeding the Office for Budget 

Responsibility target of GBP47.6 billion. 

     - The OBR's target could rise further in months to come, as the 

updated December estimate largely reflects the addition of student loans 

to the government's borrowing position, but does not account for slowing 

growth or promises of increased government spending. 

     - December borrowing fell modestly to GBP4.765 billion from 

GBP4.981 billion in 2018, taking debt as a proportion of GDP to 73.0% 

from 73.1% a year earlier.

     - Corporate tax receipts continued to disappoint, in line with 

stagnating business investment, declining by 3.4% in the first 

nine months of the fiscal year, the biggest fall since 2012.

     - Value Added Tax receipts weakened markedly over the same period 

of 2018, rising by just 2.9% between April and December, the smallest 

increase since 2012. However, VAT takings rose by an exceptionally-high 

6.0% in 2018, making for a challenging comparison in 2019. 

     - The Bank of England saw a GBP4.6 billion early repayment against 

the Term Funding scheme in December, with the total outstanding and 

added to the total Public Sector Net Debt now GBP108.2 billion. 

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

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