Government Borrowing Down On Last Year

The Public Sector Finance statistics for March 2014 were published on 23 April 2014. In March 2014, public sector net borrowing was £6.7, £4.7bn lower compared to £11.4bn in March 2013. Over the financial year 2013-14 PSNB excluding the temporary effects of financial intervention and the impact of cash transfers from the asset purchasing facility and the Royal Mail Pension Plan transfer was £107.7bn.

Central government net cash requirement was £75.4bn, lower by £29.6bn than the £105bn in 2012-13. In March it was £22.2bn. The sale of the Lloyds Banking Group reduced the public sector net cash requirement by £4.2bn. Public sector net debt for March 2014 was £1268.7 equivalent to 75.8% GDP.

In the UK the PSNB Sectoral Breakdown consists of figures from the 4 main sub-sectors: central government, local government, non-financial public corporations and financial corporations ie public sector banking groups. The largest share of borrowing is accounted for by central government. In March 2014, the sectoral breakdown of general government borrowing of £7.1bn was as follows: central government £7.2bn, local government -£0.1bn, non-financial public corporations -£0.4bn (PSNB=£6.7bn) and public sector banking groups -£1.8bn (PSNB=£4.9).

Current budget equals current receipts minus current expenditure and in March 2014 it stood at -£79.6. Current receipts were £49.8bn 5.7% up on last March. The main increases were from VAT (£0.6bn or 5.8%) and income tax (7.8% or £1bn). PAYE varies little during the year. Other receipts were from stamp duties (£1.1bn in March and £12.6bn over financial year 2013-14).

Central government current expenditure accrued to £52.4bn, 1.3% lower than March 2013. Over the financial year accrued government expenditure was £640.2bn 1.4% up on the previous year. Net social benefit expenditure was £193.4bn and other current expenditure was £398.7bn or £6.7bn higher. In 2012-13 local authorities got almost all their funding from redistributed business rates from DCLG rather than the Revenue Support Grant. In 2013-14 local authorities retained half their business rates with the remainder redistributed through the Revenue Support Grant.

In 2012-13 central government accrued current expenditure was £631.1bn, £12bn up on 2011-12. The £12bn was composed of £10bn increase in net social benefits mostly pension benefits, £0.8bn decrease in interest payments and £23.8bn increase in other current expenditure. Net social benefits increases are largely due to the 5.2% uprating of benefits in line with the CPI.

Budget Deficit Increase £1.5bn

The public sector current budget deficit in September 2010 was £13.2bn, an increase of £1.5bn on September 2009 and public sector net investment was £3bn. Public sector borrowing was £0.7bn up on 2009 at £16.2bn. The public sector net debt was £842.9bn up from £687.5bn at the end of September 2010. These figures exclude the effects of the financial interventions.

Total current receipts for September 2010 were £38bn and total current expenditure £50.7bn giving a current budget of -£13.3bn when taking depreciation and investment into account.

Public Sector Budget Deficit Down In August

The public sector current budget deficit was £13.3bn in August 2010 compared to £14.1bn last August and £12.7bn including financial interventions. Net borrowing was £15.9bn and £15.3bn including financial interventions. Net debt was £823.3bn or 56.3% of GDP (£934.9bn).

Current receipts in August totalled £37.1bn compared to £34.9bn in August 2009 and current expenditure was £49.8bn as compared to £44.9bn last August. The public sector net cash requirement was £5.8bn compared to the £10.3bn net cash requirement of August 2009.

Public Sector Finances For February

The public sector finances bulletin from the ONS says that there was a current budget deficit of £6bn in February 2010, net borrowing of £12.4bn and net debt of £857.5bn at the end of February 2010. This compares with a current budget deficit of £2.5bn, net borrowing of £8.8bn and net debt of £712.4bn in February 2009.

The public sector net borrowing figure is represented by net investment of £6.3bn and the current budget deficit of £6bn compared to the £2.5bn deficit of 2009 accounts for the change in the borrowing figure. The components of public sector borrowing are central government at £11.3bn, local government at £2.2bn and public corporations at-£1.1bn. There is quite a difference in borrowing between April-February 2008-9 and 2009-2010 with an increase of £69bn in central government borrowing accounting for the vast majority of it.

Net borrowing excluding financial interventions for Q3 2009 was £49.4bn and net debt excluding financial interventions at the end of December 2009 increased to £741.6bn from £596.9bn in the previous year.

Total current receipts were £42.6bn in February 2010 comapred with £41.1bn in 2009. Total current expenditure was £48.6bn in February 2010 compared with £42.3bn in 2009. The public sector net cash requirement was £7.7bn, £3bn more than in February 2009.

Higher Borrowing Lower Budget Surplus

In January 2010, public sector net borrowing (PSNB) was £4.3bn which is £9.6bn higher than in 2009 when there was net lending of £5.3bn. The current budget surplus was £1.2bn, but it is a lower surplus than January 2009 when it was £10.2bn. Public sector net investment was £5.5bn. Central government borrowing was £2.96bn and local government was £1.96bn, public corporations reported a negative borrowing figure of £591bn giving the £4.3bn PSNB figure. The public sector net cash requirement was -£11.770bn compared to the -£24.853bn net cash requirement of January 2009. Public sector net debt was £848.5bn, equivalent to 59.9% of GDP compared to 50% GDP last year and 61.4% last month.

The financial interventions made by the government affected public sector net debt and public sector net borrowing because public sector banks, the special liquidity scheme and the asset purchase facility transactions with the financial sector were excluded from the PSNB statistics. There were a number of public sector bank transactions with the government, equity and capital injections and depositor compensations included in PSNB.

The central government account shows total current receipts were £50.5bn, total current expenditure was £49.5bn and depreciation was -£0.6bn giving a current budget £0.4bn. Taxes on income and wealth made the largest contribution to central government receipts with £19.45bn followed by taxes on production with £13.6bn and compulsory social contributions with £8bn. The largest contributors to central government current expenditure were net social benefits with £13.99bn and 'others' with £31.23bn according to the ONS statistical bulletin on public sector finances.

Public Sector Borrowing Up In November

The public sector finances showed a current budget deficit of £16.2bn in November 2009 compared to a deficit of £13.2bn for November last year, an increase of £3bn. Net borrowing reached £20.3bn in November this year, £4.9bn higher than the £15.5bn in 2008. Net debt was £844.5bn which equals 60.2% of GDP compared to £706.2bn which was 49.6% of GDP last year. Public sector net cash requirement was £14.7bn, £4bn more than the £10.6bn net cash requirement of last year.

Public sector net investment totalled £4.1bn which when added to the current budget deficit of £16.2bn gives the total public sector net borrowing figure of £20.3bn. The sectoral breakdown of borrowing shows that central government accounted for £20.6bn, local government £0.8bn and the total was offset by £1.1bn from revisions for public corporations.

Current receipts in Novemeber amounted to £33.8bn, 3% lower than the same month last year, and current expenditure to £50.3bn, 6.4% higher than last year, of which £16.2bn was social benefits and £3.5bn interest. Income and wealth taxes accounted for £10.3bn of the current receipts but the biggest contributor was taxes on production of £13.7bn.