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U.K. Public-Sector Borrowing Rises More Than Expected as Tax Revenues Fall Short

Thursday, 20 November 2008 09:04:36 GMT

Written by David Song, Currency Analyst

Public-sector borrowing in the U.K. increased 1.4B in October, which was much higher than the 0.4B rise projected by economists, and was followed by a 4.9B decline in public finances. The data suggests that the budget deficit for the U.K. will continue to widen over the coming months as policymakers raise fiscal objectives to stem further downturns in the economy, and may be an ongoing concern for the Treasury as tax revenues continue to weaken in light of the credit crisis.

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