The government borrowed its highest amount of any February to fund support for energy bills.
Graham Watson's insight:
A snapshot of the public finances, with the numbers for February revealing that the amount of borrowing is a record for the month, largely driven by the Energy Price Guarantee, where extra spending was thought to be £9.3bn higher than the previous year.
The £16.7bn borrowed includes a large chunk of debt interest, although falling inflation means that these costs have fallen to £6.9bn, £1.3bn lower than the previous year.
There's also good news regarding tax receipts, with the BBC reporting that "the ONS said £5bn was raised through the new windfall tax on UK energy company profits. Tax income overall was also £5bn higher than a year ago at £77.8bn."
Losses on government bonds and higher debt interest caused by rising inflation add to October figure
Graham Watson's insight:
The public finances in the spotlight again, with losses on government bonds and higher debt interest resulting from higher levels of inflation seeing borrowing reaching £13.5bn last month, as the government's energy support package kicks in.
However, not only is public spending rising, other economists are worried that tax revenues are weaker than expected.
Interest payments on government borrowing reached £8.2bn last month due to rising inflation.
Graham Watson's insight:
A brief snapshot of public finances, noting that government interest payments reached a February record of £8.2bn, up £1bn on last year, as inflation - specifically RPI which has reached 7.8% drove interest rates on government debt higher.
Of course Brexit creates uncertainties. But the chancellor has funds available now to fulfil the pledge to end austerity
Graham Watson's insight:
Today's Observer business leader starts with an attack on austerity - and the Spring Statement, suggesting that, instead of simply keeping his powder dry for an unanticipated costs of Brexit, he could have chosen to abandon austerity and heed the Office for Budgetary Responsibility's view that the public finances are improving and that debt interest payments are going to fall.
It's certainly something worth considering - and keeping an eye on as we go forward.
Government borrowing hit the highest level for a December since records began in 1993.
Graham Watson's insight:
The party of economic responsibility sees a record figure for December borrowing, with government borrowing reaching £27.4bn in December, the highest since record began (i.e. in 1993). Notably, "Interest on government debt hit £17.3bn" - twice last year's figure.
The figure also allows us to see the cost of the government's energy support package, which cost £7bn in December. Without it, borrowing would have almost matched last December's £16.7bn.
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Figures could improve chances of tax cuts, but inflation drives up cost of government debt
Graham Watson's insight:
The Lord giveth, and the Lord taketh away: so the cost of servicing debt interest payments has increased in the short-term, but remain low compared to previous levels.
However, on the other hand, the level of borrowing this year is half that of last year and lower than previous Office for Budgetary Responsibility forecasts, and some argue that this might strengthen the Chancellor's hand when he makes his Spring Statement tomorrow.
The government borrowed £62bn in April - the highest monthly figure since records began.
Graham Watson's insight:
Wowsers! The level of public borrowing in April - £62 billion - is the highest since records began, and larger than the amount that the government had forecast for the whole year at the time of the Budget.
Even the ONS has seemingly given up on being able to accurately forecast this year's public finances, with tax revenues having collapsed and the cost of the furlough scheme alone being £14 billion in April.
However, on the plus side, it's likely that intervention on this scale has acted counter-cyclically, and given low rates of interest, the cost of future interest payments hasn't risen significantly, and as a number of commentators have noted, at least there are few signs that the government is struggling to find buyers of debt.
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A snapshot of the public finances, with the numbers for February revealing that the amount of borrowing is a record for the month, largely driven by the Energy Price Guarantee, where extra spending was thought to be £9.3bn higher than the previous year.
The £16.7bn borrowed includes a large chunk of debt interest, although falling inflation means that these costs have fallen to £6.9bn, £1.3bn lower than the previous year.
There's also good news regarding tax receipts, with the BBC reporting that "the ONS said £5bn was raised through the new windfall tax on UK energy company profits. Tax income overall was also £5bn higher than a year ago at £77.8bn."