Public sector borrowing soars

Public sector net borrowing rose to £16.1 billion in August, according to figuresreleased by the Office of National Statistics (ONS) today.

This was 63% higher than the £9.9 billion recorded in August 2008. Net borrowing for the financial year-to-date reached £65.3 billion, a £39.1 billion increase on the previous year.

Tax receipts fell by 11% to £25.3 billion. Total government receipts were £34.1 billion, compared with £37.5 billion in August 2008, and were £23.6 billion lower year-on-year for the financial year-to-date.

At the end of August, British net debt reached £804.8 billion, equivalent to 57.5% of GDP. In August 2008 it was £632.8 billion, 43.0% of GDP.

Excluding financial sector interventions, public sector net debt was 43.2% of GDP, £659.7 billion.

At the end of August, the public sector budget deficit stood at £12.8 billion, compared with £7.7 billion a year earlier.

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