UK public sector net borrowing was £4.1 billion y/y

Borrowing (Public sector net borrowing excluding public sector banks) in September 2018 was £4.1 billion, £0.8 billion less than in September 2017; this was the lowest September borrowing for 11 years (since 2007).

Borrowing in the current financial year-to-date (YTD) was £19.9 billion: £10.7 billion less than in the same period in 2017; the lowest year-to-date for 16 years (since 2002).

Borrowing in the financial year ending (FYE) March 2018 was £39.8 billion: £5.7 billion less than in FYE March 2017; the lowest financial year for 11 years (since FYE 2007).

This month we have introduced improvements to our treatment of Value Added Tax (VAT) refunds data; although public sector borrowing-neutral, VAT receipts have increased by £1.8 billion in the current financial YTD and £3.3 billion in FYE March 2018, with corresponding and offsetting increases in expenditure in those periods.

Debt (Public sector net debt excluding public sector banks) at the end of September 2018 was £1,789.5 billion (or 84.3% of gross domestic product (GDP)); an increase of £3.4 billion (or a decrease of 2.4 percentage points) on September 2017.