The UK is borrowing less than expected in October, but the worst is yet to come

Written by Andy Bruce

LondonNov.22 – The British government borrowed less than expected in October, according to data published on Tuesday, although the budget deficit is likely to rise significantly in the coming months thanks to support measures for the energy bill and a slowdown in the economy.

National Statistics Office (Pluginsfor its abbreviation in English), he said that the net indebtedness of the public sector amounted to 13.549 million pounds ($16 thousand million) last month.

A Reuters poll of economists had pointed to a higher reading of 22 billion pounds, largely because the figures were expected to show large down payments under government energy bill subsidies to households and energy providers.

Tuesday’s data showed a relatively modest £3.4 billion of “other” support, a preliminary estimate that refers to measures to support the energy bill.

This figure excluded the plan to reduce energy bills for companies, as estimates were not yet available, according to the Plugins.

The full cost of these measures will emerge in the coming months, said Samuel Tombs, chief UK economist at consultancy Pantheon Macroeconomics.

In addition, the fall Gross domestic product It will begin to slow the pace of tax revenue growth and put some upward pressure on welfare spending towards the end of this fiscal year.

Last week, the Office for Budget Responsibility, which makes projections on which state budgets are based, said Thursday that the economy was already in recession and would contract by 1.4% in 2023.

($1 = 0.8447 pounds)

Leave a Reply

Your email address will not be published. Required fields are marked *