Government borrowing falls less than expected

Will the government meet its forecasts?

According to the Office for National Statistics, government borrowing fell in November to £12.6bn, this is down £0.6bn from November 2015.

However, the fall comes as a surprise to analysts as it was less than what they had been originally expecting.

The monthly borrowing figure had been expected to fall to £11.6bn according to an economists’ poll.

Borrowing overall for this financial year is down on last year’s number. From April to November, borrowing which excludes state-owned banks, fell by £7.7bn to £59.5bn.

Despite the lower than expected figure on borrowing, economists said the government is still set out to meet its forecasts made in November’s Autumn Statement.

Chancellor Philip Hammond said at the time that he was aiming for a higher budget deficit of £68.2bn for the full financial year. This is much higher than his predecessor George Osborne who set his target at £55.5bn.

Hammond plans to put more investment into areas such as infrastructure.

However, ICAEW public sector director Ross Campbell, said: “His (the chancellor’s) promise to supply more funding for infrastructure projects across the country has the potential to inject some much-needed confidence into the UK, however these projects can only be successfully delivered if he is supported by a strong team that has the right mix of professional, financial and commercial skills,”