The UK government's borrowing for the fiscal year 2023/24 exceeded forecasts, leading to an increase in planned gilt sales. The Office for National Statistics reported that the public sector net borrowing (PSNB) reached £120.7 billion, surpassing the Office for Budget Responsibility's (OBR) forecast of £114.1 billion by £6.6 billion. This higher-than-expected borrowing, with a March deficit of £11.9 billion, has prompted the UK's Debt Management Office to raise its gilt sales target for the current fiscal year to £278 billion, an increase of over £12 billion from previous plans. The increased borrowing and subsequent rise in gilt sales are largely attributed to weaker tax receipts and have implications for potential pre-election tax cuts.
UK borrowing overshoots target in pre-election blo https://t.co/concBwpWIb
Preview of qtrly refunding: UK gilts underperformed after the UK raised its planned gilt issuance for the fiscal year more than expected, as the government’s budget shortfall overshot forecasts.
UK budget deficit overshoots, turning fiscal screw on Sunak government - Reuters https://t.co/Di8m9AORdZ
Blow for Rishi Sunak's hopes of pre-election tax cuts as government borrowing comes in above forecasts - despite signs the economy is recovering https://t.co/c0oxnL0DGr https://t.co/3Ye4QJ0xFL
The government borrowed £6.6bn more than expected over the past year, casting doubt on Jeremy Hunt’s capacity to launch substantial tax cuts before an anticipated general election this year, official figures showed ⬇️ https://t.co/bEMiu5gE9V
Doubts have been raised over the government's ability to unveil tax cuts ahead of the next general election after official figures revealed borrowing was higher than expected in the past year. 🔗 Read more https://t.co/MvWJsuVJsa
Jeremy Hunt’s scope for tax cuts hit by higher-than-expected borrowing https://t.co/XrRnVJ2MH5
UK raises planned gilt sales for year by more than expected https://t.co/YfT8XU4D9B via @greg_ritchie @highisland https://t.co/A1e2myA9B9
UK borrows £120bn last year, leaving ‘limited scope’ for pre-election tax cuts; FTSE 100 set to hit record high – business live https://t.co/GycT8OPE4H
No signs of wriggle room for another pre-election Budget - borrowing last year came in £6.6bn higher than @OBR_UK expected just last month. Why? Weaker tax receipts. https://t.co/JYufEv5k1m
UK Raises Planned Gilt Sales For Year By More Than Expected - BBG https://t.co/Y2dWpStO6F
UK annual government borrowing higher than forecast in blow to Chancellor https://t.co/gjU7cekhF0
The UK government raises the amount of bonds it plans to sell this fiscal year by more than analysts expected https://t.co/cRn3yAhORm
UK budget deficit overshoots in setback for Hunt’s tax cut plans https://t.co/Zaxdrkn7hj via @PhilAldrick https://t.co/nlwzgcoTlj
UK budget deficit for 2023/24 overshoots official forecast https://t.co/M7Hj9KOfct https://t.co/InPtaXsTGQ
UK borrows more than expected in March and full fiscal year https://t.co/pEw71gc3Eq
NEW public borrowing numbers suggest headroom for spending is going to be even tighter 🔹March deficit: £11.9bn 🔹it means the deficit for the financial year rose to £120.7bn 🔹That exceeds OBR forecast of £114.1bn by £7.6bn 🔹Worse outcome than Consensus 🔹Capital Economics… https://t.co/eUYJBLmkP8
💥 Britain's debt agency says it will have to ramp up planned sales of gilts by more than £12 billion for the current financial year - taking the total to £277.7 billion. This follows greater-than-expected borrowing in 2023/24, according to @ONS data this morning https://t.co/Y2NRejKkDj
UK RAISES PLANNED GILT SALES THIS FISCAL YEAR TO £278 BILLION.
U.K (MAR) PSNB EX BANKING GROUPS ACTUAL: 11.9B VS 8.4B PREVIOUS;EST 10B
U.K (MAR) PUBLIC SECTOR NET BORROWING ACTUAL: 11B VS 7.5B PREVIOUS;EST 8.8B
U.K (MAR) CENTRAL GOVERNMENT NCR ACTUAL: 28.3B VS 8.6B PREVIOUS
UK 2023-24 BUDGET DEFICIT AT £120.7B; THE OBR FORECAST WAS £114.1B.
U.K (MAR) PUBLIC FINANCES (PSNCR) ACTUAL: 20.7B VS 3B PREVIOUS
UK PSNB Ex Banking Groups GBP Mar: 11.9B (est 10.0B; prevR 9.5B) - Public Sector Net Borrowing GBP Mar: 11.0B (est 8.8B; prevR 8.6B) - Public Finances (PSNCR) GBP Mar: 20.7B (prevR 3.2B) - Central Government NCR GBP Mar: 28.3B (prev 8.6B)
UK ONS: BORROWING IN 2023/24 WAS 4.4% OF GDP.
UK PSNB EX BANKS ACTUAL 11.939B (FORECAST -, PREVIOUS 8.401B) $MACRO
🇬🇧 United Kingdom Public Sector Net Cash Requirement (Mar) $GBP Actual: 20.739B Previous: 3.236B
BOE SELLS £799.9 MLN OF BONDS IN AUCTION; RECEIVES £1.94 BLN IN BIDS, APF GILT SALE OPERATION COVER RATIO 2.43.