Michael Burton 20 July 2018

Public finances perform better than expected

The public finances continue to perform better than expectations, although total borrowing is up year-on-year even before the promised increase in health spending, according to the latest figures from the Office for National Statistics.

Borrowing in the latest full financial year (April 2017 to March 2018) was the lowest for 11 years, making the deficit 1.9% of GDP compared to a peak of 10% in 2009/10.

The public sector borrowed £39.4bn last year, £6.3bn less than in the previous financial year (2016/17) and £5.8bn less than Office for Budgetary Responsibility predictions.

Of this total, £40.6bn was borrowing for capital spending on infrastructure while borrowing for day to day revenue activities was actually in surplus by £1.3bn for the first time since 2002.

However, total debt excluding public sector banks was £1,792.3bn at the end of June, equivalent to 85.2% of GDP, an increase of £33bn on June 2017 and the public sector continues to borrow, albeit at a reducing rate.

So far in this financial year, the public sector has borrowed £16.8bn, which is £5.4bn less than in the same period in 2017.

Again, this represents the lowest year-to-date borrowing for 11 years.

Of the £16.8bn borrowed by the public sector, £19.4bn was borrowed by central government while local government borrowing was in surplus by £2.9bn.

In June borrowing was £5.4bn.

For this financial year the OBR expects the public sector to borrow £37.1bn.

SIGN UP
For your free daily news bulletin
Highways jobs

Service Director - Finance

Isle of Wight Council
£95,212 to £102,389
We need a talented and experienced Service Director of Finance to join us and play a pivotal role Isle of Wight
Recuriter: Isle of Wight Council

Strategic Director of Finance and Deputy Chief Executive (Section 151)

Isle of Wight Council
£120,536 to £129,500
Strategic Director of Finance and Deputy Chief Executive (Section 151) Isle of Wight
Recuriter: Isle of Wight Council

Service Director - Education

Isle of Wight Council
£95,212 to £102,389
This is a great time to join our Children’s Services senior leadership team as a Service Director for Education where you’ll provide system leadership Isle of Wight
Recuriter: Isle of Wight Council

Class Teacher (Primary)

Durham County Council
£32,916- £51,048
Primary School Class Teacher M1-UPS3 (£32,916  - £52,149) Permanent, Full-time Contract to begin in September 2026.   The Governors of this happy and Durham
Recuriter: Durham County Council

SEND Inclusion Partner

Essex County Council
£44258.0000 - £52068.0000 per annum
SEND Inclusion PartnerPermanentPart Time, 22.2 hours per week£44,258 to £52,068 per annum FTE, £26,554.80 to £31,240.80 per annum (pro rata)Location
Recuriter: Essex County Council
Linkedin Banner