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Summary

  1. The government borrowed £7.7bn in October, official figures show
  2. Rolls Royce agrees $5bn engine deal with Delta Airlines

Live Reporting

By Howard Mustoe and Matthew West

All times stated are UK

Howard Mustoe

Business reporter

That's it for another action-packed week on the live page. Join us on Monday from 06:00.

Haile Gebreselassie

World Service

Ethiopia's long distance runner Haile Gebreselassie has told BBC Business Update that building his coffee plantation was a marathon because of red tape. Listen

here.

Airbus R&D investment

Airbus has announced a £100m investment into research and development in the UK. The money will be used to help fund R&D in wing prototyping, design and manufacturing. The main aim of the research is a reduction in wing technology costs and a reduction in the "environmental impact of aircraft production and operations".

Via Email

Public sector borrowing

Richard Rose

Tax Partner at BDO LLP

"Despite the fact that tax receipts continue to rise, the government will remain concerned that these fall short of expectations in the context of its debt reduction programme. This disappointing trend is set to continue all the while there is an absence of meaningful wage inflation which will provide the real boost to Income Tax and NIC - the most significant areas of tax receipts for the Treasury. Today's figures will put particular pressure on George Osborne to announce measures to combat this continuing shortfall in next month's Autumn Statement but I believe he has very little room for manoeuvre."

Via Twitter

Zambian copper

World Service

Zambia
BBC

tweets: Don't worry she was earthed - the BBC's Lucy Burton reporting from a copper mine in Zambia today for @bbcworldservice (Listen
here from 17:30)

Skymark jump

skymark
Reuters

Shares in Skymark Airlines jumped 26% following a report that the Japanese carrier was in talks with Japan Airlines. Nikkei business daily's online edition said the firm was negotiating code-sharing with Japan Airlines on some routes.

Public sector borrowing

According to the ONS, income and capital gains tax receipts rose 1% to £10.5bn in October. Meanwhile, another bundle of receipts including corporation tax receipts rose to £7.5bn in the month - but an increase of just £100m compared to the same month a year ago. The Treasury had been hoping for a bit more of a bump this year, particularly from the oil and gas industry.

Via Email

Bank account raids

HM Revenue & Customs says: "Plans to recover tax and tax credit debts directly from the bank accounts of people and businesses who refuse to pay what they owe will include strong safeguards to protect vulnerable taxpayers... A consultation on the plans published in May included a significant number of guarantees to provide certainty to taxpayers, such as only applying the powers to established debts and only targeting debtors who have repeatedly ignored attempts to make contact."

China rates

The People's Bank of China said it will lower its one-year benchmark lending rate by 0.4 percentage points to 5.6%, its first cut in two years. The Australian dollar surged to the day's high and London-listed shares in mining companies jumped by 3-4%.

Public sector borrowing

But what about the whole lot all together? In October, public sector net debt excluding public sector banks was £1,449.2 billion, or £1.45tn as we say, and 79.5% of GDP, an increase of £97.1bn compared with a year earlier. That's £3bn lower than the previous month and that's because Lloyds Bank has been reclassified a private sector body after the government started to sell out its stake in the bank earlier this year.

Hornby earnings

Hornby share graph
BBC

Shares in toymaker Hornby are up 1.4% today to 73p on the back of its better than expected half year earnings. Earlier, it said it had halved its losses to £520,000 compared with a year earlier. Hornby also said sales were much improved: up 8% to £24.2m in the period.

Public sector borrowing

This financial year's borrowing target is £95.5bn, so with six months of the year left and the government already having borrowed £64.1bn, it still looks less likely the Treasury will hit its target. The question economists and MPs alike will begin to ask now will be, just how much will the government miss its target by?

Public sector borrowing

Graph showing public sector borrow
ONS

The above chart tells you all you need to know about the current state of government borrowing. The blue dot is where the government wants to get to. The red dot above it is last year's borrowing. And the blue line trending up above all of those is the actual path of government borrowing at the moment. Safe to say the Treasury is hoping for a big dip in the graph in January.

Public sector borrowing

Borrowing increased at a slightly slower rate in October compared with the a month earlier, the

Office For National Statistics has said. Public borrowing rose between April and October by £3.7bn. That compares with £5.4bn in April to September - which was a full 10% higher than a year earlier at that point. So borrowing has narrowed slightly.

Engineering

BBC Radio 4

Sir James added: "We do need to keep certain people here, who come to our universities. They come to our universities because they like Britain, they want to study engineering and science and develop new technology in Britain, and I think we should encourage to stay here. So I would change our immigration laws to allow the right sort of people to stay here - people we desperately need."

BreakingBreaking News

Public sector borrowing

The government borrowed £7.7bn in October, official figures show. That's a decrease of £0.2bn compared with the same month a year earlier.

Engineering

BBC Radio 4

More from Sir James Dyson. He's not a fan of the European Union (EU). He thinks the EU is "dominated by Germany". "In our particular field we have very large German companies who dominate standard setting and any reduction committees and so we get the old guard and old technology supported and not new technology. So I don't like a Europe dominated by Germany. I don't see that we need to be dominated and bullied by the Germans."

Via Twitter

Twitter talk

Rory Cellan-Jones

Technology correspondent

Jack
BBC

tweets: About to talk to Twitter and Square founder @jack about his plan to storm the UK cash register market

Engineering

BBC Radio 4

Sir James Dyson has been talking to the

Today programme about his company's plans to invest in the UK. He wants to boost engineering in the UK, he says. He says the majority of engineering researchers at British universities come from overseas. "We must encourage them to stay here and work for companies like Dyson and create wealth and technology here in Britain," he adds.

Bank account raids

Chancellor George Osborne r
PA

George Osborne will announce a series of climbdowns over controversial plans to allow the taxman to seize money directly from people's bank accounts, according to the

Daily Mail. It reports the Chancellor will agree to introduce new safeguards designed to prevent misuse of the powers, expected to be applied to around 17,000 "persistent" non-payers a year. People will have to have a face-to-face visit from a tax official before money can be clawed back as well, it says.

Market update

In London, the

FTSE 100 Index is up 0.17% to 6690.03, where the number-two riser is Rolls-Royce with their new engine order. Germany's
Dax is up 0.36% to 9518.41 and the
Cac in Paris rose 0.25% to 4244.97.

Public borrowing

BBC Radio 4

So why low wage growth? Part of the problem is that the jobs being created in the economy are "relatively low paying" says Mr Tombs. He thinks it would be very hard for the government to pay for a rise in the personal tax allowance to £12,500 as the Prime Minister promised in his Conservative party conference speech in the next parliament without there being significantly bigger cuts in government department budgets.

Public borrowing

BBC Radio 4

More from Mr Tombs: He says the Chancellor's borrowing target for this financial year is "completely out of reach". Borrowing would have to come down by a third in order, over the next six months, for the government to meet its target. "The real problem has been income tax receipts," he says. "They've been extremely weak and that's partly because we have seen very weak growth in average earnings across the economy But also the rise in the personal tax allowance has cost rather more than was expected."

Public borrowing

BBC Radio 4

"We are expecting a small improvement [this month] in borrowing compared to the previous year. October is a particularly important month for corporation tax receipts and they have actually been growing at quite a healthy rates so far this year. Perhaps £7.5bn [in borrowing] compared to £7.8bn last year," Samuel Tombs, senior economist at Capital Economics tells the

Today programme.

Hornby earnings

Hornby train sets in a toy shop
PA

Toy maker Hornby has reported a near 50% reduction in losses for the six months to the end of September to £520,000 - it lost £1.09m for the same period a year earlier. In June the Scalextric owner reported pre-tax losses increased to £4.5m from £2.5m a year earlier. New boss Richard Ames has embarked on a turnaround, since taking over in April. In the summer the firm announced it had ended its contract with a Chinese company after supply chain problems.

Via Twitter

Dulux boss

Simon Jack

Business correspondent, BBC News

tweets: "Friday boss Matt Pullen runs Dulux
hear him on dog, business and paint names like Sumatran Melody"

Rolls-Royce deal

jet
Getty Images

Rolls-Royce has agreed a $5bn deal for engines with Delta Air Lines. New Trent XWB engines will power 25 Airbus A350s and Trent 7000 engines will power 25 Airbus A330neo aircraft.

Market update

Tokyo stocks closed higher by 0.33% as investors study Japan's preparation for an election next month. The Nikkei 225 index at the Tokyo Stock Exchange gained 56.65 points to 17,357.51, while the Topix index edged up 0.18%, or 2.54 points, to 1,400.18. In Hong Kong the benchmark Hang Seng Index edged up 25.42 points to 23,375.06.

Via Twitter

Banker's pay

Simon Jack

Business correspondent, BBC News

tweets: "George Osborne's letter to Mark Carney on problems of higher fixed
pay for bankers."

Engineering boost

BBC Radio 4

James Dyson
BBC

James Dyson is announcing a £1.5bn investment and has started building a new factory at the Dyson HQ in Malmesbury, Wiltshire. He has said it will eventually provide 3,000 new engineering jobs and he hopes it will lead to hundreds of new products being developed there. He'll be speaking to the

Today programme later on this morning.

Public borrowing

Radio 5 live

Karen Campbell of accountants Grant Thornton on

Wake Up to Money says government borrowing is higher because tax receipts are down. Lower wage growth, lower stamp duty and lower gas and oil revenues have all caused tax to be down.

Foreign direct investment

Radio 5 live

Foreign investment grew quicker in Wales last year than anywhere else in Britain, according to UKTI figures. Marc Evans is chief executive of Sure Chill and is on

Wake Up to Money. His company has benefited from investment from the Bill and Melinda Gates Foundation. Doing business in mid-Wales brings benefits, he says, but "it takes a little longer to get to the airport".

Shale gas

Radio 5 live

"Are we serious about finding alternative energy?" asks David Buik, city analyst on

Wake Up to Money. It's clean energy, he says. "The infrastructure is all there" when it comes to Ineos, he says.

Matthew West

Business Reporter

Morning folks. We have the latest public sector finance figures later this morning. But before that there are half year earnings from toy maker Hornby and brewer Fullers. Stay with us.