This article is from the source 'guardian' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.
You can find the current article at its original source at https://www.theguardian.com/business/2016/may/24/george-osborne-financial-year-government-borrowing-deficit-reduction-ons
The article has changed 3 times. There is an RSS feed of changes available.
| Version 0 | Version 1 |
|---|---|
| George Osborne's new financial year gets off to 'a disappointing start' George Osborne's new financial year gets off to 'a disappointing start' | |
| (7 months later) | |
| The chancellor, George Osborne, has fallen behind in his deficit-reduction programme just a month into the new financial year, with the government borrowing more than expected in April. | The chancellor, George Osborne, has fallen behind in his deficit-reduction programme just a month into the new financial year, with the government borrowing more than expected in April. |
| The UK government had to borrow £7.2bn last month to plug the gap between spending and earnings, according to the Office for National Statistics. | The UK government had to borrow £7.2bn last month to plug the gap between spending and earnings, according to the Office for National Statistics. |
| It was £300m less than April 2015, but higher than the £6.6bn that economists expected. | It was £300m less than April 2015, but higher than the £6.6bn that economists expected. |
| Alan Clarke, economist at Scotiabank, said the figures marked “a disappointing start” to the 2016-17 financial year. | Alan Clarke, economist at Scotiabank, said the figures marked “a disappointing start” to the 2016-17 financial year. |
| He added: “While it was still an improvement, it wasn’t big enough to keep the public finances on track. | He added: “While it was still an improvement, it wasn’t big enough to keep the public finances on track. |
| “To hit the chancellor’s borrowing goal for this year we needed to see borrowing down by an average of £1.5bn per month compared with the same month a year ago so we are running behind schedule already.” | “To hit the chancellor’s borrowing goal for this year we needed to see borrowing down by an average of £1.5bn per month compared with the same month a year ago so we are running behind schedule already.” |
| In a further blow to George Osborne, the March borrowing figures were revised up by about £2bn, taking the total for 2015-16 to £76bn – almost £4bn more than official forecasters at the Office for Budget Responsibility expected. | In a further blow to George Osborne, the March borrowing figures were revised up by about £2bn, taking the total for 2015-16 to £76bn – almost £4bn more than official forecasters at the Office for Budget Responsibility expected. |
| Osborne’s borrowing target for this year is £55.5bn, according to the OBR forecasts at the time of the budget in March. | Osborne’s borrowing target for this year is £55.5bn, according to the OBR forecasts at the time of the budget in March. |
| The Treasury said the figures showed an improvement in the public finances, with borrowing down on the same month a year ago and the lowest April monthly deficit since the recession. | The Treasury said the figures showed an improvement in the public finances, with borrowing down on the same month a year ago and the lowest April monthly deficit since the recession. |
| However, the spokeswoman warned that a vote to leave the European Union on 23 June would worsen the public finances, as tax receipts would fall during a fresh recession. | However, the spokeswoman warned that a vote to leave the European Union on 23 June would worsen the public finances, as tax receipts would fall during a fresh recession. |
| “The fiscal repair job is not finished and it would be dangerous to put this at risk,” she said. | “The fiscal repair job is not finished and it would be dangerous to put this at risk,” she said. |
| “As uncertainty ahead of the referendum weighs on our outlook, Treasury analysis has shown that if the UK votes to leave the EU on 23 June, we would be tipped into a year-long recession and receipts could fall by £36bn in the long term, unwinding years of hard work.” | “As uncertainty ahead of the referendum weighs on our outlook, Treasury analysis has shown that if the UK votes to leave the EU on 23 June, we would be tipped into a year-long recession and receipts could fall by £36bn in the long term, unwinding years of hard work.” |