Timing is a funny thing. The Chancellor received some good news about the public finances this morning, just when everyone is focused on fairly catastrophic election results for the Tories. A few hours after it was announced that strong Conservative majorities were overturned in the Mid-Bedfordshire and Tamworth by-elections (Katy Balls analyses the results here), we also learned that there may be slightly more scope than previously thought for Jeremy Hunt to come up with some pre-election sweeteners, with the pressure on to cut taxes.
Public sector net borrowing in September came to £14.3 billion – a staggering sum, yes, but £1.6 billion less than in September last year and far below the Office for Budget Responsibility’s (OBR) most recent forecast of £20.5 billion. This week’s borrowing figures came in billions of pounds below what the OBR predicted for the fiscal year. So far into the 2023-24 financial year, the government has borrowed £19.8 billion less than the official forecaster thought it would.
This can be credited to two things: lower than expected debt interest payments and higher than expected tax receipts.
Britain’s best politics newsletters
You get two free articles each week when you sign up to The Spectator’s emails.
Already a subscriber? Log in
Comments
Join the debate for just £1 a month
Be part of the conversation with other Spectator readers by getting your first three months for £3.
UNLOCK ACCESS Just £1 a monthAlready a subscriber? Log in