UK Analysis: September Borrowing Falls; YTD Lowest Since 2007>

-UK September PSNB-X Stg5.902 billion vs Stg6.606 billion September 2016

-UK 2016/17 PSNB-X -7.2% to Stg32.5 billion

     By Laurie Laird and Jamie Satchithanantham 

     London (MNI) - UK public borrowing fell to its lowest September 

level since 2007 last month, despite a sizable increase in 

government interest payments, leaving year-to-date borrowing at its 

lowest level since 2007. 

     Excluding public sector banks, borrowing decreased to Stg5.902 

billion last month, from Stg6.606 billion in September of 2016, below 

the MNI median forecast of Stg6.5 billion. 

     That left net debt, excluding the Bank of England, at 80.0% of 

gross domestic product in September, down from 80.4% a year earlier. 

     Borrowing over the first six months of the financial year totalled 

Stg32.5 billion, a 7.2% fall over the same period of last year and the 

lowest half-year tally since 2007. 

     Debt interest outlays rose by Stg400 million last month, with 

inflation lifting the payments to investors in index-linked gilts. 

     Over the first half of the financial year, debt interest payments 

have jumped by Stg4.1 billion over the same period of 2016, the biggest 

increase since 2011, according to a National Statistics official. 

     Corporate tax receipts slumped for the fourth straight month, 

declining by Stg100 million. The calculation of corporate tax accrual 

involves an "element of forecast" according to a National Statistics 

official, who provided no further information. 

     In contrast, VAT receipts were up by Stg400 million in September 

over September 2016 while income and capital gains tax was up Stg600 

million.  

     The central government net cash requirement fell to Stg19.257 

billion in September, from Stg21.960 billion in September of 2016. Owing 

to two large cash transactions the year-to-date CGNCR was the lowest 

since 2007.   

     The current budget deficit fell to Stg2.538 in September, compared 

to Stg3.503 billion a year earlier. 

     Including public sector banks, the public sector borrowing fell to 

Stg5.326 billion in September, from Stg6.030 billion a year earlier. 

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

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