UK Borrowing Up in Sep; Debt-to-GDP Ratio At 60-year high

SEP PSNB-X GBP36,101BN VS GBP7,747 BN IN SEP 2019

SEP CGNCR GBP25,236BN VS GBP14,824BN SEP 2019

SEP PSNCR GBP31,484BN VS GBP2,161BN SEP 2019

SEP DEBT/GDP RATIO EX-BOE 92.1% VS 72.4%

SEP YTD BORROWING GBP208.5BN VS GBP34.0BN SEP 2019

Year-to-date borrowing increased to GBP208.5bn in Sep, which is GBP174.5bn more than in the same period a year ago and the highest borrowing in any Apr to Sep period since records began (1993). Debt-to-GDP surged to 103.5% in Sep, showing the highest ratio since the financial year ending 1960. Borrowing recorded GBP36.1bn in Sep, marking the third highest borrowing since the start of the series in 1993. Government tax receipts were GBP6.0bn lower in Sep 2020 than in Sep 2019 due to large falls in VAT, business rates and corporation tax receipts. Central gov bodies spent approximately GBP77.8bn on day-to-day activities of which GBP4.9bn account for the Coronavirus Job Retention Scheme. CGNCR registered at GBP25.2bn in Sep which was GBP10.4bn more than a year ago and the highest cash requirement since Sep 2008. The ONS noted that borrowing is subject to more uncertainty than usual and larger revisions are likely.