By Marino Donati | 21 November 2014
Public sector borrowing between April to October this year rose £3.7bn compared to the same period the previous year, according to figures from the Office of National Statistics.
Public sector net borrowing excluding public sector banks (PSNB ex) from April to October 2014 was £64.1bn. On a year-on-year basis borrowing was £7.7bn in October, down £200m on the previous year.
The ONS said that the year-to-date figures were a better indication of public finances because of the volatility of the monthly data.
Government cash requirement from April to October was £56.2bn, an increase of £20.3bn compared with the same period the previous year, mostly due to lower cash transfers from the Asset Purchase Facility.
Public sector net debt excluding public sector banks (PSND ex) was up £97.1bn in October 2014 compared to October the previous year.
The figures reflect large revisions to public sector net debt including public sector banks such as the re-classification of Lloyds Banking Group to the private sector.
The Institute for Fiscal Studies said the big picture was largely unchanged. Weaker tax receipts and higher-than-forecast spending meant borrowing wasn't falling.
Soumaya Keynes, a research economist at the IFS, said: 'With the Autumn Statement only just over a week away, the chancellor may be disappointed that this month’s figures continue to show that borrowing this year is higher than over the same months of last year, in contrast to the Budget forecast that borrowing would fall by £11bn over the year as a whole.
'In part this gloomy picture is the result of timing effects that will unwind later in the year. However, it likely also reflects weaker-than-forecast earnings growth, which has depressed revenues from income tax and National Insurance, adding to an already large deficit.'
