21.12.11
Government on course for deficit reduction
Public borrowing fell by more than expected in November, leaving the Government on course to meet the full-year borrowing target of £127bn that the Office for Budget Responsibility set.
Economists’ average forecast was £19.6bn, but public sector borrowing fell from £20.36bn to £18.09bn in November, according to the Office for National Statistics (ONS).
Net borrowing is currently at £88.3bn, £10.4bn lower than the previous working year.
A Treasury spokesman said: “Today’s figures show that the Government is making good progress on deficit reduction, with borrowing between April and November over £10bn lower than over the same period last year.
“These figures demonstrate the coalition Government’s unwavering commitment to dealing with the debts it inherited, despite the economic uncertainty in the Eurozone and the heightened turbulence in global financial markets.”
However, some forecasters warn that the UK could be on the brink of another recession, which would reduce the Government’s tax income and increase the amount of benefits claims.
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