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

Homelessness Prevention and Solutions Officer

London Borough of Richmond upon Thames and London Borough of Wandsworth
£38,976 to £47,229 per annum
Job Title
Recuriter: London Borough of Richmond upon Thames and London Borough of Wandsworth

Quality & Practice Standards Auditor

Middlesbrough Council
£41,771 - £44,075
We have an exciting role on offer within our Adult Social Care and Health Service as a Quality & Practice Standards Auditor. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Shovel Driver/Plant Operative - Chelmsford

Essex County Council
Up to £28033.00 per annum
Shovel Driver/Plant Operative - ChelmsfordPermanent, Full Time£28,033 per annum Location
Recuriter: Essex County Council

Culture Marketing Officer

Middlesbrough Council
£28,598 - £30,024
We have an exciting role on offer within our Culture services as a Culture Marketing Officer. Middlesbrough, North Yorkshire
Recuriter: Middlesbrough Council

Short Breaks Worker (Casual)

Wakefield Council
£16.62 - £17.85 per hour, Grade 7, Casual
We would love to appoint suitably skilled, motivated, and caring people, to work with our children and young people Wakefield, West Yorkshire
Recuriter: Wakefield Council
Linkedin Banner