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KPMG comments on October 2018 public sector finances data

KPMG comments on Oct 2018 public sector finances data

Yael Selfin, Chief Economist at KPMG UK, comments on today’s public sector finances data

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 “October’s data paints a difficult picture for the Chancellor, with cumulative public sector net borrowing estimated to already stand at £26.7 billion, higher than the £25.5 billion total borrowing the OBR expected for the full fiscal year. 

 

“Higher VAT receipts as well as higher takings from income tax and tobacco duties helped boost government coffers, offset by a smaller earnings transfer from the Bank of England. Government spending was up primarily on day to day expenditure, including social benefits, while the rise in net investment was smaller, albeit from a lower base.    

 

“Given past spending patterns, we now expect total borrowing for the full fiscal year of 2018-19 to come to £28.1 billion, or £2.6 billion above the OBR October forecast. This increase in the deficit eats into the projected room that the Chancellor saved in case of a damaging Brexit outcome, which we estimate is now diminished to £12.8 billion.”

 

-ENDS-

 

 

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Riku Heikkila, CNC Communications

 

Tel:        020 3219 8812

Email:    riku.heikkila@cnc-communications.com

 

 

KPMG Press Office

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Notes to Editors:

 

About KPMG

KPMG LLP, a UK limited liability partnership, operates from 22 offices across the UK with approximately 14,500 partners and staff.  The UK firm recorded a revenue of £2.2 billion in the year ended 30 September 2017. KPMG is a global network of professional firms providing Audit, Tax, and Advisory services. It operates in 152 countries and has 189,000 professionals working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative ("KPMG International"), a Swiss entity.  Each KPMG firm is a legally distinct and separate entity and describes itself as such.

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