Support for energy bill pushes UK budget deficit to February record | – #Support #energy #bill #pushes #budget #deficit #February #record
SummaryCompaniesLarge Britain 16.7 in February billion pound announces budget deficit Borrowing boosted by energy bill support programs Deficit looks on track to meet OBR forecast for 2022/23 Figures underline tough choices facing finance minister Hunt
LONDON, March 21 (Reuters) – According to official data on Tuesday, Big Britain It posted the largest budget deficit for any February since at least 1993, which was inflated by government spending on energy support programs.
National 16.68 in February of the net borrowing of the public sector, excluding state-owned banks, according to the Statistics Office billion pound sterling (20,43 billion dollars) announced that. Figures are not adjusted for inflation.
The reading, which pointed to public sector net borrowing of 11.4 billion pounds excluding state-owned banks, was above all forecasts in a Reuters poll of economists.
The ONS said February debt data reflected “significant” spending on energy law support programmes.
The higher-than-expected borrowing underscores the dilemma facing Finance Minister Jeremy Hunt, who must fund expensive support for households and businesses in the near term while working out a way to cut taxes until the next election, possibly in 2024.
Hunt said last week that energy subsidies would be extended until June, but would be phased out after that.
The ONS said spending on energy support schemes was £9.3 billion in February alone.
“Debts are still high because we prices we are committed to supporting thriving households and businesses and are spending around £1,500 per home to help half of people’s energy bills this winter.”
The Office for Budget Responsibility’s (OBR) forecasts, published with its annual budget last week, show that each future financial year will average more than previously forecast. 10 It showed an improved outlook for public finances compared to its previous report in November, with borrowing £1 billion lower.
While the OBR said this reflected a less pessimistic economic picture than four months ago, borrowing is still expected to rise by around £50bn a year on March 2022 forecasts before the full extent of the energy shock is seen.
Tuesday’s data showed total borrowing from April 2022 to February 2023 was £132.2 billion. Last week the OBR forecast borrowing for 2022/23 would total £152.4bn, or 6.1% of economic output.
“The OBR’s full-year forecast … is not in danger of being breached,” said economist Samuel Tombs of consultancy Pantheon Macroeconomics.
“However, we continue to think that the OBR’s optimism about the medium-term economic outlook is misplaced and that the government will not stick to plans for significant fiscal consolidation over the coming years.”
The ONS said that Britain’s debt interest rate was 6.9 billion pounds in February, which inflation £1.3bn less than a year earlier, reflecting payments on government bonds linked to
(1 dollars = £0.8163)
Reporting by Sachin Ravikumar and Andy Bruce Editing by Kylie MacLellan, Sarah Young and Christina Fincher
Our standards: Thomson Reuters Trust Principles.
2023-03-21 13:32:56
Source – reuters
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