22.09.11
Public sector borrowing hits record high
Public sector borrowing for August was a record £15.9bn, higher than the predicted figure of £13bn, according to the Office for National Statistics.
It was also found that Government borrowing for previous months was lower than originally thought, although economists still consider it likely that Chancellor George Osborne will miss his borrowing targets for the year.
Chris Williamson, chief economist at Markit, said the official figures dealt a blow to the Government's deficit reduction targets: “There seems little hope that the Government will hit its spending targets this year, as slower growth means less tax revenues and higher welfare spending.”
But a Treasury spokesman said: “These are challenging times, but despite economic growth being lower than the OBR's forecast earlier this year, tax receipts have continued to grow and spending so far this year has grown at the rate the Office for Budget Responsibility forecast in the budget.
“These figures also include a welcome and substantial downward revision to borrowing so far this year and to overall borrowing last year.”
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