Laura Sharman 22 October 2015

Increase in local government borrowing causing 'considerable uncertainty'

Increase in local government borrowing causing considerable uncertainty image

Local authorities borrowed £1.6bn more in the first half of this year compared to 2014, according to figures published yesterday by the Office for National Statistics.

The figures show that while public sector net borrowing was down £1.6bn on the previous year, this was offset by the increase in local government borrowing.

In its commentary on the statistics, the Office for Budget Responsibility (OBR) said the drop in borrowing was mainly due a 3.9% increase in central government accrued receipts from increased taxes.

The OBR said the increase in local government borrowing would lead to ‘considerable uncertainty’ as it had forecast a £0.7bn full-year drop in July.

The OBR stated: ‘Provisional local authorities’ estimates are often subject to significant revision, but this clearly represents a source of considerable uncertainty for our November forecast.’

TUC General Secretary Frances O’Grady said the figures showed the government was borrowing at four times the rate planned for this year.

He said: 'Instead of clearing the deficit, severe public spending cuts have slowed down the recovery and held back wage growth, leaving income tax revenues and national insurance receipts much lower than expected.

'The chancellor is in danger of repeating the mistakes of the last parliament with further public spending cuts that put the recovery at risk. This would damage the tax base and leave the public finances in a mess for even longer.'

Participatory budgeting image

Participatory budgeting

Evgeny Barkov explains what participatory budgeting means and how it can reveal what citizens need.
SIGN UP
For your free daily news bulletin
Highways jobs

Deputy Chief Executive & s.151 Officer

Wychavon District Council
package to £90k
This is an exceptional career development opportunity, and the perfect role for a talented public service leader with ambition. Worcestershire
Recuriter: Wychavon District Council

Senior Practitioner - Family Support & Protection

Essex County Council
Up to £237 per day + Umbrella
Managing a defined caseload, the social worker is responsible for working effectively with children, young people and families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Family Support & Protection

Essex County Council
Up to £207 per day + Umbrella
Managing a defined caseload, the Social Worker is responsible for working effectively with children, young people & families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Assessment & Intervention Team

Essex County Council
Up to £207 per day + Umbrella
Managing a defined caseload, the Social Worker is responsible for working effectively with children, young people & families/carers to achieve positive change and improved outcomes. England, Essex, Basildon
Recuriter: Essex County Council

Qualified Social Worker - Assessment & Intervention Team

Essex County Council
Up to £207 per day + Umbrella
Family Operations delivers direct provision of services relating to vulnerable children, young people and complex families. England, Essex, Harlow
Recuriter: Essex County Council

Public Property

Latest issue - Public Property News

This issue of Public Property examines how how flexible workspaces can lead the way in regeneration for local authorities, Why local authority intervention is key to successful urban regeneration schemes and if the Government’s challenge of embracing beauty is an opportunity for communities.

The March issue also takes a closer look at Blackburn with Darwen Council's first digital health hub to help people gain control over health and care services.

Register for your free digital issue