Public Borrowing Higher Than Expected

Public Borrowing Higher Than Expected.

The Office for National Statistics (ONS) has reported that the government borrowed more than expected in June, they also reported that since the start of the fiscal year, they have failed to reduce public sector borrowing.

Economists had predicted for public sector net borrowing (PSNB) to reach £10.65bn, but they surpassed that figure and took borrowing up to £11.4bn. The public deficit stands at £36.1bn up from 7.3% on the year before.

PSNB excluding financial interventions peaked in 2009/10 but has since then declined. In 2013/14 borrowing remained higher than before 2007/08 and the financial crisis.

So far this year business surveys and other statistics point to some strong economic growth in the first half of the year, which will help tax revenues and help assist the finance minister George Osborne catch up to his fiscal goals.