Government Borrowing Increased By £0.7bn In August

Public sector net borrowing excluding public sector banks (PSNB ex) in August 2014 was £11.6bn, £0.7bn up on August 2013 according to statistical data from the ONS. The current budget deficit was £9.4bn and net investment was £2.2bn. PSND ex was £1,432.2bn, up £96.7bn compared with August 2013. Net borrowing from April to August 2014 increased £2.6bn to £45.4bn compared with the same period in 2013.

Government borrowing can be further broken down sectorally, general government accounted for £12.8bn of which central government accounted for £10.9bn and local government £1.9bn, public non-financial corporations -£0.1bn and the Bank of England -£1.1bn. Public financial corporations accounted for -£0.8bn and PSNB was £10.9bn.

Central government net cash requirement from April to August was £33.4bn up £5.6bn compared with 2013-14.

Governmemt Borrowing Down By £8.1bn

Public Sector Net Borrowing (PSNB) for the financial year 2013-14, excluding the temporary effects of financial interventions, the transfer of the Royal Mail pension plan, transfers from the Bank of England Asset Purchase Facility, was estimated to have been £107.0bn. The figure for the same period in 2012-13 was £115.1bn a difference of £8.1bn. PSNB ex was £94.9bn.

Public Sector Net Borrowing (PSNB) for May, excluding the temporary effects of financial interventions, the transfer of the Royal Mail pension plan, transfers from the Bank of England Asset Purchase Facility, was estimated to have been £13.3bn. In May 2013 borrowing was £12.6bn, a difference of £0.7bn. PSNB ex was £13.3bn. The PS current budget for May was -£11.8bn and PS net investment was £1.5bn.

The sectoral breakdown of PSNB shows that general government borrowing was £13.4bn of which central government accounted for £12.5bn, local government £0.9bn and non-financial public corporations -£0.1bn.

Central government net cash requirement for 2013-14 was £75.4bn, £29.6bn lower than in 2012-13 when it was £105bn. PSND for May was £1284.5bn or 76.1% of GDP.

Public Borrowing Down £4.4bn

Public borrowing for the year to date excluding the temporary effects of financial intervention and the effects of the transfers of the Royal Mail Pension Plan and the Asset Purchase Facility was £99.3bn, £4.4bn down on the same period in 2012-13

Public sector net borrowing (PSNB) in February excluding the temporary effects of financial interventions was £9.3bn including a £2.3bn transfer from the sale of 4G licenses but excluding the £2.7bn asset purchase facility transfer for the month. General government borrowing was £9.7bn of which central government borrowing was £10.4bn and local government borrowing was -£0.8bn, non-financial public corporations borrowing was -£0.3bn. The current budget was -£66.2bn for April to February 2014 and -£6.5bn for February.

Public sector net debt (PSND) for February 2014 excluding the temporary effects of financial intervention was £1246.8bn equal to 74.7% of GDP, up from £1,160.7bn and 72.5% respectively in February 2013. PSND for the purposes of fiscal policy is the total gross financial liabilities less liquid financial assets.

Central government receipts totalled £45.9bn, £0.5bn lower than last February. Central government expenditure in February was £53.8bn, £3.9bn up on last February. Net investment in February was £1.9bn, £2.3bn up on February last year when it was -£0.4bn. Central government net cash requirement for the year to date was £53.2bn down from £70.2bn for the same period in 2012-13.

2.4% Increase In Business Investment

The ONS recently released the latest figures on business investment in the UK. The release includes breakdowns of total gross fixed capital formation (GFCF), business investment being only one component. They show indicators of investment in assets such as dwellings, transport equipment, machinery, buildings and intangible assets. GFCF increased by £1.3bn, or 2.4%, to £56bn over the quarter, business investment was the largest component.

Business investment also increased by 2.4%, an estimated £0.8bn, compared with the last quarter. It is 8.5% higher than Q4 2012.

The data in this survey are concerned with net investment that is the value of capital expenditure minus the value received from disposals. Net investment was considered to have been relatively weak through 2012 and 2013 compared with other sectors of the economy because even though there was relatively strong growth in the acquisition of assets there was also the increasing disposal of assets which grew more strongly than acquisitions and still remains high.

The primary data source for the business investment statistics from the ONS is the Capex, or Quarterly Capital Expenditure Inquiry.

Public Borrowing Down £4bn

In the financial year to date public sector net borrowing (PSNB) stands at £78.5bn compared with last year's £62.8bn or £15.6bn more than last year. If the effects of temporary financial interventions and the effects of the Royal Mail Pension Plan and the transfers from the Bank of England Asset Purchase Facility Fund are excluded PSNB was £90.7bn, £4bn lower than the same time last year.

In January 2014 PSNB was £-4.7bn (in surplus). Last year at the same time PSNB was £-6bn. Public sector net debt (PSND) in January 2014 was £1,239.5bn or 74.6% of GDP. The central government net cash requirement for the year to date was £49.7bn which is £21.9bn lower than last year when it was £71.6bn.

The current budget for the year to date was £60.1bn and public sector net investment was £18.4bn, the resulting public sector net borrowing figure is £78.5bn.

The public sector current budget (receipts minus liabilities) for January 2014 was £7.9bn and public sector net investment (PSNI) was £3.2bn so PSNB was £-4.7bn. Total central government borrowing amounted to £-4.4bn, of which central government borrowing was £-6bn and local government spending was £1.6bn. Non-financial corporations accounted for £-0.3bn. PSNB ex was £-4.7bn. Public sector banking groups also accounted for £-1.7bn giving a PSNB figure of £-6.4bn.

UK Inward Investment At All Time High

The UK's International Investment Positions (IIP) were published recently by the ONS. Inward investment reached a record high of £936bn in 2012 and outward investment stood at £1,088bn, similar to the levels of 2011. Inward investment means investment in the UK by foreign companies and outward investment means investment abroad by UK companies.

UK companies net investment flows overseas decreased from £60.1bn in 2011 to 26.5bn in 2012. Investment flows to Europe show a disinvestment of £0.7bn in 2012, quite a decrease from the £27.3bn in the previous year. Net earnings from overseas investments by UK companies decreased from £100bn in 2011 to £80.2bn in 2012.

Foreign companies continued to increase their investment in the UK during 2012. Net investment flows increased from £28.9bn in 2011 to £35.4bn in 2012. Net earnings by foreign companies investments in the UK decreased slightly from £44.4bn in 2011 to £42.7bn in 2012.

UK FDI statistics are produced in accordance with international standards set by OECD and IMF and their definitions of FDI and balance of payments respectively. FDI estimates are important for measuring the UK balance of payments and they are used by a number of Government departments for briefing and policy purposes. International organisations like Eurostat, UNCTAD, OECD and the IMF also use the FDI figures for policy, analysis and negotiations and the estimates are also widely utilised by commercial companies, academics and independent researchers.

Government Borrowing £0.2bn Lower Than Last Year

The latest figures from the ONS on public sector finance suggest that in October 2013, public sector net borrowing excluding the effects of financial intervention (PSNB ex) was £8.1bn. General Government borrowing totalled £8.2bn of which central government accounted for £7.7bn and local government £0.5bn. Non-financial public corporations reported -£0.1bn of borrowing. Public sector net debt (PSND) was £1207.2 or 75.4% of annual GDP. The public sector current budget was -£5.7bn and public sector net investment (PSNI) was £2.3bn.

Government Borrowing Down £1.3bn

The key measures of the public sector finances published by the ONS show that in August 2013 public sector net borrowing was £13.2bn, £1.3bn lower than in August 2012 when it was £14.4bn. This is because the public sector current budget was -£11.2bn and public sector net investment was £1.9bn. Public sector net debt was £1,193bn or £74.6% of annual GDP.

The sectoral breakdown of public sector borrowing (PSNB) shows that in August 2013 general government borrowing was £13.8bn of which central government accounted for £12.7bn and local government £1.1bn. Non-financial public corporations accounted for -£0.6bn and gives the PSNB figure of £13.2bn.

The central government net cash requirement (CGNCR) was £9.1bn, £0.6bn up on last year. The CGNCR for the 6 months from April to August 2013 was £26.4bn, 12.6% or £3.8bn lower than in the same period the previous year.

These figures exclude the temporary effects of financial intervention.

Net Borrowing Lower Than In 2012

In 2012 public sector net borrowing (PSNB) was £33.5bn lower than in 2011/12 at £85bn, excluding temporary effects of financial interventions.

PSNB in May 2013 at £8.8bn was £6.9bn lower than in May 2012 when it was £15.6bn. The current budget was -£11.3bn and public sector net investment was £1.4bn. If the figures exclude the effects of the Bank of England Asset Purchase Facility and the Royal Mail Pension Plan PSNB equals £12.7bn and net investment £1.4bn.

Public sector net debt excluding the temporary effects of financial interventions (PSND ex) was £1,189.2bn or 75.2% of GDP.

Public Borrowing Up In April

Government borrowing fell by £35.8bn to £85.1bn in 2012-13. PSNB was £120.9bn in 2011-12. In April government borrowing was £6.3bn, £25.4bn up on April 2012 when it was -£19.1bn. At the end of April 2013 government debt was £1,185.3bn or 75.2% of GDP. PSND in April 2012 was £1,086.5bn or 70.6% of GDP.

The current budget, the difference between receipts and expenditure for April was -£5.6bn compared with -£8.2bn in 2012 a difference of £2.5bn. Net investment was £0.7bn.

Current Deficit Up £0.9bn

The public sector current budget deficit was £10.6bn in March 2013, up £0.9bn on March last year. Public sector net borrowing was down £1.6bn on last March to £15.1bn. Both the current budget deficit and net borrowing are reduced by £6.4bn due to cash transfers from the Bank of England Asset Purchase Facility Fund to Government. The Royal Mail Pension Plan also brought net borrowing down and public sector net investment down by £28bn.

Public sector net investment was £4.6bn compared to £7bn in March 2012. The 4G Spectrum auction receipts of £2.3bn are included in the 2012/13 PSNB ex figures. The 4G auction like the Olympics are recent events that affect public sector finances statistics. The central government net cash requirement for 2012/13 was £109.5bn, £17bn lower than in 2011/12 (£126.5bn). Public sector net debt was £1,185.8bn or 75.4% of GDP.

Public Sector Borrowing In Credit

Public sector net borrowing was back in credit again in January 2013 with borrowing at a negative level of -£11.4bn, £5bn higher net repayment than a year earlier when it was -£6.4bn.

The current budget surplus was £14.9bn, £5.1bn up on last year, public sector net debt was £1162.8bn (73.8% of GDP). Net investment was £3.5bn.

UK FDI Continues To Increase

Companies from the UK have continued to increase their net investment overseas to give the highest figure since 2008 for 2011. Inward investment flows to the UK however continued to fall to reach £31.9bn the smallest since 2004. Outward and inward investment positions increased to reach record highs of £1098.2bn and £766.2bn respectively in 2001. Net earnings from outward investment reached £101.6bn the highest since records began (1958). Net earnings from direct investment are recovering from the falls of 2008. Earnings reached £37.6bn in 2010 and £43.6bn in 2011. Net investment overseas is possibly a reflection of strong growth in emerging markets like China and India.

Public Sector Borrowing Down 0.7%

Public sector net borrowing for September decreased by 0.7% to 12.8bn. The public sector current budget deficit was £11.2bn and public sector net investment was £1.6bn. The public sector net debt increased by £92.9bn to £1065.4bn or 67.9% of GDP. Public sector borrowing can be broken down further. General government accounts for £13.4bn of borrowing with central government borrowing increasing 0.3% to £13.8bn in September 2012 and local government borrowing falling £0.7bn to -£0.2bn. Non-financial public corporations borrowing decreased by £0.3bn to -£0.6bn. The central government net cash requirement (CGNCR) in September 2012 was £22.1bn, £1bn or 4.2% lower than September 2011. The sale of the assets of the transferred Royal Mail Pension Plan accounted for a large part of the drop on CGNCR.

Public Sector Borrowing Unchanged Over Year

Public sector net borrowing was unchanged over the year from August 2011 to August 2012 at £14.4bn according to a statistical bulletin from the Office for National Statistics (ONS). The current budget deficit in August was £13.2bn an increase of £0.4bn on last year. Net Investment was £1.2bn, a difference of £0.4% on last year. Net debt was £1039.5bn or 66.1% of GDP at the end of August. Differences in net borrowing and net investment figures were affected by the £28bn transfer from the assets of the Royal Mail Pension Plan in April.

Deficit £4.4bn Higher Than Last April

Provisional estimates for public sector finances from the ONS suggest that in April 2012 there was a current budget deficit of £12.4bn, £4.4bn higher than last April, net borrowing of -£16.5bn (a surplus), £25.6bn lower than April 2011, and a net debt of £1006.3bn. Public sector net investment in April was therefore -£28.9bn. These figures exclude financial interventions. Central government's share of borrowing was -£14.2bn, local government's share -£2.4bn, public corporations borrowing was £0.1bn. The public sector finances figures for April include the one-off transfer of £28bn to the Government as part of the transfer of the Royal Mail Pension Plan.

Government Borrowing Up 0.2%

The lastest bulletin on public sector finances from the ONS and HM Treasury tells us that the current budget deficit (excluding the temporary effect of financial interventions) in March 2012 was £11.1bn, £0.8bn higher than in March 2011. Net borrowing (PSNB) was £18.2bn, £0.2bn higher than last year. The borrowing total is made up of borrowing by central government was £8.8bn, local government £8.8bn,m public corporations £0.6bn. Net debt (PSND) was £1022.5bn or 66% of GDP compared with £905.3bn at the end of March 2011. Public sector net investment was £7.1bn.

Borrowing Continues To Increase

Net borrowing, excluding the temporary effects of financial interventions, was £15.9bn in August 2011, an increase of £1.9bn on last year according to data from the ONS. Public sector net investment (PSNI) was £2.1bn and public sector current budget (PSCB) deficit was £13.8bn.

The current budget deficit, excluding the temporary effects of financial interventions, was £13.8bn in August 2011, an increase of £2.2bn on 2010. Over the last three months the budget deficit has decreased from £44.5bn to £43.5bn.

Net debt (PSND), excluding the temporary effects of financial interventions, was £944.5bn, equivalent to 61.4% of GDP from £810.5bn or 55.3% GDP.

The public sector net borrowing figure of £15.9bn can also be arrived at by a calculation using data relating to central and local government borrowing. Central goverment borrowing was £14.7bn, local government borrowing was £1.5bn and public corporations borrowing was a negative figure of £0.3bn. Central government net cash requirement increased by £4.9bn from £5.8bn to £10.7bn.

Increase In Budget Deficit In May

The UK Government reported a current budget deficit of £15.3bn in May 2011. Net borrowing was £17.4bn and net debt was £920.9bn. These figures exclude the temporary effects of financial intervention. Total receipts were £38bn and total expenditure was £51.7bn. Net investment was £2.7bn after accounting for depreciation of £0.6bn.

Public Sector Deficit Increase In April

Public sector finances statistics show that in April 2011 the current budget was -£8.4bn and net borrowing was £10bn compared with -£5.6bn and £7.3bn respectively in April 2010. Net debt increased from £765.5bn to £910.1bn or 60.1% of GDP. Public sector net investment was £1.6bn down slightly from £1.7bn in 2010.