UK govt borrowing ( Public Sector Net Borrowing Requirement) data now out

  • GBP+8.6bln prev
  • PSNB ex bank groups GBP -1.3bln vs -1.1bln exp vs +9.4bln prev
  • PSNCR GBP -3.0bln vs +15.4bln prev revised up from +13.9bln
  • central govt NCR GBP -0.2bln vs +17.8bln rev up from +17.7bn
  • income tax receipts GBP +18.5bln, strongest July since records began in 1997

First headline surplus since 2012

The public sector spent less money than it received in taxes and other income. This meant it was in surplus (or credit) by £1.3 billion, which was broadly in line with market expectation.

Of this £1.3 billion saving, £3.2 billion were saved on the cost of the 'day-to-day' activities of the public sector (the current budget deficit), while it spent £1.9 billion on infrastructure (net investment).

Annual borrowing has generally been falling since the peak in the financial year ending March 2010. So far this financial year (April to July 2015), the public sector has borrowed £24.0 billion. This is £7.3 billion lower than at the same point in the previous financial year

Full ONS report here

GBPUSD still above 1.5700 but unable to make further progress capped by offers around 1.5725 still