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| Version 1 | Version 2 |
|---|---|
| UK public sector borrowing unchanged | UK public sector borrowing unchanged |
| (35 minutes later) | |
| UK public sector net borrowing was £14.4bn in August, the Office for National Statistics has said, little changed from the same month last year. | UK public sector net borrowing was £14.4bn in August, the Office for National Statistics has said, little changed from the same month last year. |
| But the figure was the biggest monthly deficit on record for the month of August. | But the figure was the biggest monthly deficit on record for the month of August. |
| Corporation tax receipts fell by 2.1% and benefits payments rose 4.9%. | Corporation tax receipts fell by 2.1% and benefits payments rose 4.9%. |
| The figures make it more likely that the government will fail to achieve its aim of wiping out the structural budget deficit by 2015. | The figures make it more likely that the government will fail to achieve its aim of wiping out the structural budget deficit by 2015. |
| The borrowing figures differ depending on whether the temporary effects of one-off financial transactions are included or excluded. | |
| The April 2012 net borrowing figures included two one-off transactions to the government - £28bn from the transfer of the Royal Mail Pension Plan and £2.3bn following the closure of the Special Liquidity Scheme. | The April 2012 net borrowing figures included two one-off transactions to the government - £28bn from the transfer of the Royal Mail Pension Plan and £2.3bn following the closure of the Special Liquidity Scheme. |
| The ONS says that for the period April to August 2012, public sector net borrowing, excluding financial interventions such as bail-outs to the banks, was £31bn, £17.4bn lower than in the same period last year. | |
| But if the effect of these one-off transactions is stripped out, then public sector net borrowing for April to August 2012 would be £61.3bn, £12.9bn higher than in the same period last year. | But if the effect of these one-off transactions is stripped out, then public sector net borrowing for April to August 2012 would be £61.3bn, £12.9bn higher than in the same period last year. |
| The ONS also reported that public sector net borrowing for the fiscal year 2011/2012 was £119.3bn, £6.7bn lower than the Office for Budget Responsibility (OBR) forecast of £126bn. | The ONS also reported that public sector net borrowing for the fiscal year 2011/2012 was £119.3bn, £6.7bn lower than the Office for Budget Responsibility (OBR) forecast of £126bn. |
| David Gauke, Exchequer Secretary to the Treasury, said: "Today's figures show the government borrowed almost £7bn less last year than previously estimated. | David Gauke, Exchequer Secretary to the Treasury, said: "Today's figures show the government borrowed almost £7bn less last year than previously estimated. |
| "This is further evidence that we are dealing with our debts and getting the deficit down." | "This is further evidence that we are dealing with our debts and getting the deficit down." |
| But with public sector net debt standing at £1.04 trillion at the end of August 2012, equivalent to 66.1% of gross domestic product (GDP), the pressure on the Chancellor George Osborne remains intense. | |
| On Thursday night, the chancellor received some support from Sir Mervyn King, governor of the Bank of England. | |
| In an interview with Channel 4 News, Sir Mervyn said it would be "acceptable" if the government missed its deficit reduction target, as long as this was the result of slower global economic growth. |