Mubasher: The UK’s public sector net borrowing, excluding banks, slipped by GBP 800 million year-on-year in September to GBP 4.1 billion, marking the lowest level since 2007.

As for the current fiscal year (FY), borrowing amounted to GBP 19.9 billion year-to-date (YTD), GBP 10.7 billion less than in the year-ago period, according to the Office for National Statistics’ (ONS) report on Friday.

Borrowing stood at GBP 39.8 billion in the FY ended March to the lowest since 2007, down GBP 5.7 billion from the previous FY, data showed.

Value Added Tax (VAT) receipts rose by GBP 1.8 billion YTD despite public sector borrowing-neutral, while it increased by GBP 3.3 billion in the past FY.

Public sector net debt, excluding public sector banks, reached GBP 1,789.5 billion at the end of September, accounting for 84.3% of gross domestic product (GDP), ONS said.

Debt, excluding Bank of England, fell by 4.2% year-on-year, or GBP 38 billion, to GDP 1,599.4 billion, making up 75.3% of GDP, it added.

On 28 September 2018, we announced the reclassification of housing associations in Scotland from the public to the private sector; reducing debt at the end of September 2018 by £3.4 billion.

In September, the ONS announced it would reclassify housing associations in Scotland from the public to the private sector to cut debt by GBP 3.4 billion at the end of September.