|Date:||22 October 2013|
|Authors:||Rowena Crawford and Soumaya Keynes|
Today the Office for National Statistics and HM Treasury published Public Sector Finances September 2013. We now have details of central government receipts, central government spending, public sector net investment, borrowing and debt for the first half of financial year 2013–14.
Rowena Crawford, a Senior Research Economist at the IFS, said:“Today’s figures continue to suggest a relatively positive outlook for the public finances this financial year, with borrowing having grown less quickly so far this year than the Office for Budget Responsibility forecast for the year as a whole. However, in large part this is due to trends in public sector net investment and borrowing by local government and public corporations, which can be particularly volatile. Central government current receipts have grown faster over the first half of the year than forecast by the OBR for the year as a whole, and if this trend continues, receipts could come in around £9 billion higher than forecast. However, we should be cautious of reading too much into this trend, since receipts figures for early this year will have been boosted by some high income individuals pushing part of their income from last tax year into this tax year to take advantage of the reduction in the higher rate of income tax.”