Business

UK government borrowing at £10.3bn in October

HM Treasury building
Image caption The gap between government income and spending rose despite indications that the tax take is rising

The UK government borrowed £10.3bn to plug the gap in the public finances in October, figures from the Office for National Statistics show.

It marks a record for October, and is up from £10.1bn in the same month last year, but the figure was broadly in line with economists' estimate.

October's figure brings the amount the government has borrowed since the start of the financial year to £83.8bn.

The borrowing rise came despite signs that the Treasury's tax take has risen.

The figure excludes the impact of financial intervention by the government to bail out the banks.

But the ONS revealed downward revisions to borrowing in August and September, down to £14.1bn and £15bn respectively.

The revisions suggest that the government remains on track to come within the £149bn borrowing forecast by the Office for Budget Responsibility for the 2010-11 financial year.

October's figures saw the UK's budget deficit widen by another £7.1bn.

Net debt is now £845.8bn, representing 57.1% of gross domestic product - also a record for October.

The rise in October borrowing came despite signs that the improving economy was boosting the tax take, with corporation tax revenues up 29% and VAT receipts also higher.

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