UK DATA: Apr PSNB-X Stg9.954bn vs Stg7.25bn in Apr 10
–Apr PSNCR Stg3.259bn vs -Stg5.834bn in Apr 10
–Apr Current Budget-X -Stg8.388bn vs -Stg5.58bn in Apr 10
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Public Sector Net Borrowing ex fin. interventions hit its highest level
for an April on record rising to Stg9.9bn from Stg7.3bn in Apr 10, above
the median for Stg6.6bn. The current budget deficit also hit a record
high for an April as did net debt as a % of GDP which rose to 60.1%. A
large chunk of the deterioration in PSNB since last year was because
the one-off bank payroll tax boosted receipts by Stg3.5bn in Apr 2010,
something which analysts appear to have overlooked. Still the figures
are not exactly a great start to the new fiscal year with spending up 5%
y/y, the highest since Nov. While NS stressed this data are subject to
revision and are not very reliable at this stage, they don’t really show
the government getting to grips with spending yet.