–Jul PSNB Stg3.173bn vs Stg5.518bn in Jul 09; median Stg4bn
–Jul PSNB ex financial interventions Stg3.79bn vs Stg6.091bn in Jul 09
–Jun PSNCR -Stg4.133bn vs Stg0.94bn in Jul 09; median Stg0.0bn

LONDON (MNI) – Public Sector Net Borrowing fell in July as
corporation tax receipts bounced back sharply from last year, figures
from National Statistics Thursday showed.

Public Sector Net Borrowing stood at Stg3.173 billion in July, down
from Stg5.518 billion in the same month an earlier and below the median
forecast of Stg4 billion.

Excluding financial interventions, the preferred Treasury measure
of borrowing, PSNB declined to Stg3.79 billion in July from Stg6.091
billion last year.

The data suggest public sector deficits have peaked and are slowly
trending down.

For the financial year to date PSNB stood at Stg42.6 billion, lower
than the Stg46.4 billion outturn for the same period last year.

Current receipts growth on an accrued basis rose 10.5% in the year
to July, the highest growth since March. There was particularly strong
growth in corporate tax receipts which were up 35.6% in July on the
year, as company profitability recovered from the low levels seen in
2009.

The current budget posted a surplus of Stg0.13 billion in July, up
from a deficit of Stg3.263 billion in July 2009. Excluding financial
interventions there was a deficit of Stg0.523 billion, up from Stg3.832
billion last year.

In his emergency Budget last month, George Osborne forecast
borrowing to ease to Stg149 billion in 2010/11 from Stg154.6 billion in
2009/10.

The Public Sector Net Cash Requirement posted a net repayment in
July of Stg4.133 billion, up from a deficit of Stg0.94 billion in July
2009.

–London bureau: email: drobinson@marketnews.com

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