July saw the local authority borrowing requirement slip close to zero - almost in line with the same period in 1994...
July saw the local authority borrowing requirement slip close to zero - almost in line with the same period in 1994 and in line with most City forecasts.
But despite the similarity with 1994 borrowing, Treasury moves seem to indicate that local authority borrowing trends are not encouraging.
The LABR has been revised upwards by £0.2 billion since the last report in July, following new figures in the DoE's quarterly survey and despite previous Treasury forecasts of an improvement in the surpluses recorded in the LABR last year.
A Central Statistical Office spokesman brushed off the revision as 'not unusual', but the LABR has already deteriorated by £0.4bn cumulatively in the first four months of 1995-96 to £0.6bn compared with the same period last year. The PSBR, which has also been revised upwards to £35.9bn for the year - £1.1bn higher than published in June and £0.3bn higher than first published in April - was £0.7bn in July and £12bn in the first four months of 1995-96.