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LOCAL AUTHORITIES BORROWING REQUIREMENT -£0.4BN

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The local authorities borrowing requirement (LABR) is provisionally estimated to have been minus£0.4bn in Septembe...
The local authorities borrowing requirement (LABR) is provisionally estimated to have been minus £0.4bn in September (ie a net repayment), compared with a net repayment of minus £0.1bn in the same period last year.

The LABR for the first six months of 1996-7 was £0.3bn, as it was in the same period last year.

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

-- PSBR in September 1996 was £3.4bn

-- PSBR for the first six months of 1996-7 was £16.1bn compared with £20.1bn in 1995-6

-- August's PSBR has been revised downwards by £0.1bn from £4.5bn to £4.4bn.

-- The PSBR and PCBR for 1995-96 have been revised downwards by £0.4bn, the PSBR from £32.2bn to £31.7bn and the PCBR from minus £2.3bn (ie a net repayment) to a net repayment of minus £2.8bn

-- PSBR excluding privatisation proceeds was £4.4bn in September and £19.8bn in the first six months of 1996-7 compared with £20.1b on in the same period last year.

-- Privatisation proceeds in September were £1.0bn, of which £0.2bn resulted from the sale of National Power, PowerGen, and Southern Electric shares, and £0.8bn from the final call on GENCO 2.

Central government

The central government own account borrowing requirement (CGBR(O)) was £3.8bn in September and £17.2bn for the first six months of 1996-7, compared with £20.8bn for the same period last year. Excluding privatisation proceeds, CGBR(O) was £4.8bn in September and £20.9bn for the first six months of 1996-7, compared with £20.8 billion in the same period last year (an increase of £0.1bn).

Debt interest payments include £1.2bn from the inflation uplift paid on redemption of the 2% Index Linked Treasury Stock 1996. (Index-linked gilts attract two separate interest payments: the fixed rate interest is paid every six months throughout the life of the gilt; the index-linked uplift to compensate for inflation is paid on redemption of the gilt and the full amount scores as interest in the PSBR at that time).

Public corporations

The public corporations borrowing requirement (PCBR) is provisionally estimated to have been £0.1bn in September, compared with minus £0.3bn (ie a net repayment) in the same period last year. The PCBR for the first six months of 1996-7 was minus £1.4bn (ie a net repayment), compared with a net repayment of £1.0bn in the same period last year.

Revisions

Since publication last month, August's PSBR has been revised downwards by £0.1bn from £4.5bn to £4.4bn. This was mainly due to a downward revision of £0.1bn to the PCBR caused by revised figures on public corporations' holdings of notes and coin.

The PCBR, and PSBR, have been revised down in the second half of 1995-96 and the first quarter of 1996-97 due to better information on transactions in gilts by public corporations. The PSBR has been revised down from £32.2bn in 1995-96 to £31.7bn. (A fall of £0.3bn in the third quarter of 1995-96, and a fall of £0.1bn in the final quarter). In the first quarter of 1996-97 the PSBR has been revised downwardsby £0.5bn.

Next Month

Privatisation proceeds of £0.2bn will be received in October from the sale of AEA Technology.

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