Title

HEALTH

Figures bring mixed news

There is good news and bad news in the latest public finance figures, writes Michael Burton.

There is good news and bad news in the latest public finance figures.

The level of borrowing is down but public sector net debt (PSND) is up on this time last year. 

Reducing PSND was one of George Osborne's targets which has had to be shunted into the future and yet total debt still stubbornly refuses to budge downwards.

The good news from the latest Office for National Statistics figures shows that in July 2015 the government spent less than was received in taxes and was in credit for the first time in a July since 2012. 

A 4% increase in tax revenue that month reflects the strengthening economy. 

For the year to date receipts are up by 4.4% compared to 2014 while spending is up by 0.1%. 

The Government spent 3% more than July 2014, of which two-thirds was on health, education and defence, and a third on welfare including pensions. 

Annual borrowing has been falling steadily since its peak in 2010 and so far this financial year is £24bn or £7.3bn less than the same period last year, although there was an increase of £800m from local government. 

Annual borrowing (the deficit) was 5.1% of GDP last financial year - down from its peak of 11% five years ago.

Local government net borrowing for the financial year-to-date (April 2015 to July 2015) was estimated to be in surplus by £8.6bn, a decrease in surplus of £0.8bn on the previous year, mainly due to decreases in grants received from central government in April.

However, PSND was 80.8% of GDP at the end of July, which was actually 5.1% higher than in July 2014.

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