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MNI DATA IMPACT: UK YTD Borrowing Tops Target; Corp Tax Down>

     LONDON (MNI) - UK borrowing has already exceeded full year targets, 
with an expected burst of spending in the wake of the Conservative 
party electoral victory last week yet to come. 
     The following are the key points from public sector finance data 
published Friday by the Office for National Statistics.
     - The UK's financial position has deteriorated markedly, even 
before the newly-installed Conservative government unleashes a spending 
plan promised in the election campaign. 
     - Borrowing rose by 11.3% to Stg50.9 billion between April and 
November, exceeding the newly-published OBR target of Stg47.6 billion. 
     - The OBR's target could rise further in months to come, as the new 
estimate largely reflects the addition of student loans to the 
government's borrowing position. The OBR was prevented from publishing 
its adjusted target ahead of the election, but later iterations could 
include reduced tax receipts in line with slowing economic growth 
     - November borrowing rose modestly, to Stg5.575 billion from 
Stg5.329 billion a year earlier. The outturn was flattered by a Stg700 
million fall in payments to the European Union last month. The decline 
reflects a shift in the timing of such remittances toward the end of the 
year and could affect December's borrowing figures, according to a 
National Statistics official. 
     - Corporate tax receipts continued to disappoint, falling by 5.9% 
in November, the biggest fall for the month since 2012. Over the year to 
date, corporate tax receipts have declined by 2.9%, the sharpest 
decline since 2012. With business investment flat in Q3, corporate 
receipts are likely to remain soft.  
     - Fiscal outlays rose dramatically, with spending on goods and 
services increasing by 4.3% over October of 2018 and by 4.4% YTD, the 
sharpest rise since 2009. A National Statistics official could not 
comment on whether the increased government spending is related to 
Brexit preparations. 
-London bureau: 44 (0) 203 865 3812; email:

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