–Nov PSNB Stg22.774bn vs Stg16.719bn in Nov 09; median Stg16.8bn
–Nov PSNB ex financial interventions Stg23.314bn; median Stg17bn
–Nov Current Budget -Stg19.948bn vs -Stg13.964bn in Nov 2009
–Nov PSNCR Stg16.8bn vs Stg14.782bn in Nov 09; median Stg13.2bn

LONDON (MNI) – Public Sector Net Borrowing hit its highest level on
record in November, as spending rose at the fastest pace since February,
figures released by National Statistics showed Tuesday.

The figures are likely to fuel fears that the public finances are
far from under control, with the government yet to curb spending amid
slowing revenue growth.

Excluding financial sector interventions PSNB rose to Stg23.314
billion in November from Stg17.395 billion in November 2009, above the
median forecast of Stg17 billion and the highest level since records
began in January 1993.

For the financial year to date borrowing stood at Stg104.4 billion,
only a very small improvement on the record deficit seen last year for
the same period of Stg105.1 billion.

Including interventions PSNB rose to Stg22.774 billion from
Stg16.719 billion, also the highest on record.

The Treasury has put the focus firmly on the excluding financial
sector interventions measure as it believes the fluctuations in the
value of the stakes it took in the banking sector distort the underlying
picture of the public finances.

The continuing deterioration in the borrowing figures pushed net
debt as a percentage of GDP up to 58% in November from 50% in the same
month a year earlier, the highest on record.

On an accrued basis, current spending growth rose 10.8% in the year
to November, the highest since February this year. National Statistics
said that spending was boosted by higher EU contributions which added
Stg0.7 billion, health spending which added Stg0.9 billion and defense
which accounted for Stg0.4 billion.

In contrast, receipts growth stood at just 3.1% in the year to
November, the lowest since December 2009. National Statistics said that
this was partly due to VAT repayments this month, although they were
unable to explain why these were larger than usual.

The current budget excluding financial sector interventions posted
a deficit of Stg19.948 billion in November, up from a deficit of
Stg13.964 billion in November 2009, the highest since records began in
April 1998.

The Public Sector New Cash Requirement rose to Stg16.811 billion
from Stg14.782 billion in November 2009 above the median forecast of
Stg13.2 billion.

–London bureau: email: drobinson@marketnews.com

[TOPICS: MT$$$$,M$B$$$,MABDS$]