x Abu Dhabi, UAESunday 23 July 2017

UK reports borrowing at £8.6bn

Britain's government borrowed much more than expected last month, official data showed yesterday.

Britain's government borrowed much more than expected last month, official data showed yesterday.

The Office for National Statistics said the government's preferred measure, public sector net borrowing excluding financial sector interventions, came in at £8.6 billion (Dh50.26bn) last month, up from £5.93bn in October last year. Economists' average forecast was of £6bn in a Reuters poll of 19 analysts.

A near 10 per cent fall in corporation tax receipts, in a month when there is usually a heavy inflow, accounted for much of the increase.

The data make it less likely the government is on track to meet the goal of reducing full-year public sector net borrowing to £120bn.

Reaching the Office for Budget Responsibility's forecast requires Britain's budget deficit to fall by 1.2 per cent on the year but so far this tax year it is 7.4 per cent higher than at the same time last year.