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LOCAL AUTHORITIES BORROWING REQUIREMENT -£0.1BN

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The local authorities borrowing requirement (LABR) is provisionally estimated to have been minus£0.1bn in March (i...
The local authorities borrowing requirement (LABR) is provisionally estimated to have been minus £0.1bn in March (ie a net repayment), compared with £1.4bn in the same period last year.

The LABR for the financial year 1995-6 was minus £0.7bn (ie a net repayment), compared with a net repayment of £1.0bn in 1994-5.

March's LABR figure was affected by a £700m payments to commute some local authority debt held in respect of provision of water and sewerage services in Scotland.

Provisional estimates of the public sector borrowing requirement (PSBR) show that:

PSBR in March 1996 was £9.6bn

PSBR for the financial year 1995-6 was £32.2bn compared with £35.9bn in 1994-5

February's LABR has been revised downwards by £0.1bn to minus £0.9bn (ie a net repayment). February's PCBR has been revised upwards by £0.1bn to minus £0.9bn (ie a net repayment). The PSBR for February remains unchanged.

PSBR excluding privatisation proceeds was £9.7bn in March and £34.6bn for the financial year 1995-6 compared with £42.3bn in 1994-5.

Privatisation proceeds in March were due to redemptions of BT loan stock.

Central government

The central government own account borrowing requirement (CGBR(O)) was £8.9bn in March and £35.5bn for the financial year 1995-6, compared with £38.3bn in 1994-5. Excluding privatisation proceeds, CGBR (O) was £9.0bn in March and £37.9bn for the financial year 1995-6, compared with £44.7 bn in 1994-5 (a decrease of £6.8bn).

March's CGBR(O) figure was affected by a £700m payment to commute some local authority debt held in respect of provision of water and sewerage services in Scotland. This added to NDOs, and the CGBR(O), and reduced the LABR.

Total cash receipts were £18.7bn in March and £244.8bn for financial year 1995-6, compared with £225.5bn for 1994-5, an increase of 8.5 per cent. Receipts from Inland Revenue were £6.7bn in March and £97.1bn fo financial year 1995-6 (11.5% higher than last year). Receipts from Customs and Excise in March were £5.6bn and £76.7bn for the financial year 1995-6 (6 per cent higher than last year).

Social Security contributions were £42.9bn for financial year 1995-6 (5.5 per cent higher than last year). Interest and dividends were £8.7bn for the financial year 1995-6 and other receipts, including national non-domestic rates, were £19.5bn in the same period.

Total cash outlays were £27.6bn in March and £280.3bn for financial year 1995-6, compared with £263.8bn in 1994-5, an increase of 6.5 per cent. Net departmental outlays (excluding on-lending to local authorities and public corporations) in March were £25.8bn, and £259.3bn for the financial year 1995-6, an increase of 4 per cent compared with £248.9bn in the same period last year. Interest payments were £23.4bn for the financial year 1995-6.

Privatisation proceeds were £0.1bn in March and amounted to £2.4bn in financial year 1995-6. The receipts in March were from redemptions of BT loan stock.

The public corporation borrowing requirment (PCBR) is provisionally estimated to have been £0.8bn in March, compared with £1.4bn in the same period last year. The PCBR for the financial year 1995-6 was minus £2.6bn (ie a net repayment), compared with a net repayment of £1.4bn in 1994-5.

Revisions

Since published last month, February's LABR has been revised downwards by £0.1bn to minus £0.9bn (ie a net repayment). This was due mainly to revised data on local authority temporary debt. February's PCBR has been revised upwards by £0.1bn to minus £0.9bn (ie a net repayment). This was due mainly to revised data on holdings of notes and coins. The PSBR for February remains unchanged.

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