Public Borrowing Up 0.6%

The ONS released the latest public sector finance figures recently and public sector net borrowing (ex. financial interventions) was £15.4bn in December 2012, 0.6bn higher than Decmber 2011 (£14.8bn). The public sector current budget deficit was £13bn, 0.5bn higher than December 2011 (£12.5bn). Public sector net borrowing was £121.6bn in 2011/12 £4.4bn lower than the £126bn the OBR expected. Public sector net debt (PSND) was £1,111.4bn euivalent to 70.7% of GDP. Net Investment was £2.4bn.

PSNB ex(excluding the effects of financial interventions) was £15.4bn because central government borrowing was £15bn, local government borrowing was £0.2bn and non-financial public corporations borrowing was £0.2bn. Public sector banking groups borrowing was -£2.2bn and PSNB was £13.2bn. The central government net cash requirement was £22bn.

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.

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.

Current Deficit Down By £1.6bn

The latest public sector finance statistics from the ONS show that the current budget deficit in May 2010 was £14.1bn, £1.6bn down on £15.7bn in 2009. Reconciled with net investment of £1.9bn net borrowing (PSNB) was £16bn, £1.4bn down on £17.4bn in 2009. PSNB excluding financial interventions was £28.7bn in Q4 2009. Public sector net debt (PSND) was £903bn which is equivalent to 62.2% of GDP. PSND excluding financial interventions at the end of March was £771.5bn from the £616.9bn a year earlier. Public sector net cash requirement £12bn, £7.2bn down on £19.1bn.

A sectoral breakdown of the figures shows that central government accounted for £20.2bn and local government -£3.4bn giving a general government figure of £16.8bn. Public corporations accounted for -£0.8 giving the PSNB figure of £16bn.

Fall In Public Sector Employment

The number of people in public sector employment fell by 7,000 to 6.09m in the first quarter of 2010. The number employed in central government remained the same but in local government the numbers fell by 4,000 and in public corporations by 3,000. The Civil Service lost 3,000 workers and its share of public secor employment stands at 529,000.

Analysing the figures according to Standard Industrial Classification (SIC) industries the largest increase was the 4,000 (1.1%) increase in the National Health Service. Other health and social work increased by 4,000 (1%), education 3,000 (0.2%) and construction 1,000 (2%).

London is the region with the largest number of public sector emplyees with 782,000, then the North West with 696,000 and the South East 694,000 and Scotland 610,000. There were increases in publc sector emplyment of 4.3% or 19,000 in the East of England, 3% or 23,000 in London, the South West with 5,000 or 1% and East Midlands with 0.8% or 3,000 but decreases in the South East of 7,000 or 1%, a 0.6% fall in Yorkshire and the Humber of 3,000 and the West Midlands of 1,000 or 0.2%.

At the national level, the number of public sector workers in England increased by 0.8% or 37,000 and N.Ireland by 0.4% or 1,000. Scotland saw a decrease in employee numbers of 13,000 while Wales was unchanged.

The most significant losses in the Civil Service in Q1 2010 compared with Q4 2009 were in the Justice ministry, HM Revenue and Customs and Work and Pensions. Defra's losses were small in comparison.

Government Deficit Up Nearly £3bn

Public sector finance statistics show that the current deficit was £2.8bn higher than March 2009 at £14.8bn. Public sector net borrowing (PSNB) was £3.4bn higher at £23.5bn. Central goverment borrowed £21.6bn, local government £2.1bn and public corporations -£0.3bn. Public sector net investment was £8.7bn, up £0.6bn on March 2009. The public sector net cash requirement was £2.6bn lower at £25.8bn. Public sector net debt (PSND) was £890bn or 62% of GDP from £742bn, 52.9% at the end of March 2009.

The financial interventions introduced by the government are still making a difference to the economy. PSNB excluding interventions was £35.5bn in Q4 2009 from £26.4bn in Q4 2008-9. PSND excluding financial interventions in March 2010 was £771.6bn or 53% GDP from £617bn or 44% GDP last year.

Current Budget Deficit £11.5bn

Recent figures from the ONS and HM Treasury show that the current budget was in deficit by £11.5bn in December 2009, £0.4bn more than in December 2008. Government net borrowing, the total of central and local government and public corporations together, was £15.7bn, £1.9bn more than in December 2008, when it was £13.8bn. The public sector net cash requirement, again a total of central and local government and public corporations, was £23.6bn, £2bn more than the previous year and net debt was £870bn, equivalent to 61.7% of GDP compared to 60.1% for November and 51.7% for December 2008.

If the Goverment financial interventions are excluded public secor net borrowing was £50.3bn and net debt was £740.6bn from £596.9bn in 2008.

Looking at the public sector finances in terms of the current financial year which helps to smooth out any volatility in monthly data which can often mislead, the current budget deficit is £93.4bn, the public sector net borrowing was £119.9bn, £56.3bn more than the same period of 2008-9. Net borrowing excluding Goverment financial interventions was £127.9bn, £57.8bn higher than the same period 2008-9. Public sector net cash requirement was £120.5bn, compared to a cash requirement of £51.4bn in 2008-9. Public sector net investment was £4.2bn compared with £2.7bn lastb year.

During December the Government also subscribed £5.7bn to Lloyds Banking Group rights issue and £25.5bn to the Royal Bank of Scotland group, £6.4bn of which will be treated as a capital grant. These will increase the central government net cash requirement but will reduce public corporations' net cash requirement correspondingly.

The Institute of Fiscal Studies said that the Government will not have to borrow as much as expected in the Pre-Budget Report but also that next month's figures will include self-assessment returns for 2008-9, Corporation Taxes and NICs on bonuses for this month.

Fall In Business Investment

Total business investment for the first quarter of 2009 was £3.4bn, down by £2.7bn on the previous quarter or 7.6%, compared with 9.7% on the previous year. The revised estimate for business investment for 2008 is up by 3.3% to £146.1bn on 2007. Total investment in manufacturing was £3,484m, construction £4,598m, services £24,177m and public corporations non-manufacturing £1,118m giving the total figure of £33,377m. The private sector spent a total of £1,519m on computer software and £1,543m on computer hardware which is a reflection of the increasing importance of that kind of investment.