25-03-2008

ONS identifies increase in public borrowing

News by Adfero for Simply Business - independent providers of public liability insurance, business finance, landlord insurance, buy-to-let mortgages & commercial mortgages.

New data from the Office for National Statistics (ONS) has highlighted an increase in public sector borrowing.

According to the organisation's statistics, net public sector borrowing reached £2.67 billion last month, reports the BBC. To date, during this financial year, total UK public sector borrowing has reached £27.7 billion.

"If growth is slower than the Treasury projects, then borrowing could easily rise above these levels," says John Hawksworth, a representative from PricewaterhouseCoopers. "The chancellor has reduced his growth forecast for 2008 from 2-2.5 per cent to 1.75-2.25 per cent."

Last month's borrowing requirements contrast with 2007, when net public sector borrowing was at a lower rate of £2.48 billion.

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