Government borrows record £15.9bn in August
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The Government borrowed £15.9bn in August, the highest August figure since records began.
According to the Office of National Statistics, the Government is now running a monthly deficit of £13.3bn, up from £11bn in August 2009.
The ONS says the public sector current budget was in deficit by £46.6bn between April and August 2010. This is a £3.9bn lower deficit than in the same period last year, when there was a deficit of £50.4bn.
The Government is set to run up a net debt of £823.3bn or 56.3 per cent of GDP in 2010, up from 2009’s debt of £667.7bn. This debt rises to £934.9bn or 60.4 per cent GDP if all the inventions as a result of the banking crisis are taken into account.
Barclays Capital analyst Simon Hayes says: “We do not draw any strong conclusions from today’s news regarding the medium-term outlook for the deficit, which the evidence so far suggests will come in a little below the Office of Budget Responsibility’s full-year forecast of £149bn. However, this record level of borrowing will keep the pressure on the government to press ahead with its ambitious deficit reduction plan.”
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