Sharp rise in public sector borrowing
Government borrowed more than expected.
Government borrowing was much greater than expected in October, which has reduced the probablility the UK hits its targets for deficit reduction. This is the last borrowing data available before the chancellor's Autumn Statement on December 5th.
Public sector borrowing reached £8.6 bn in October, according to the Office for National Statistics, an increase from the £5.8bn borrowed in October last year. The figures were far worse than the 6bn analysts had expected.
David Kern, chief economist at the British Chambers of Commerce, wrote in the Guardian:
Unless there are distinct improvements over the next few months, borrowing for the entire financial year could exceed the Office for Budget Responsibility's budget forecast by around £15bn.
Analysts blamed falling corporation tax reciepts, which were down 9 per cent this year, and a rise in departmental spending.