Public sector borrowing rises

Public sector net borrowing rose by £600 million to £15.4 billion in December, according to the Office for National Statistics.

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IFS: Borrowing could 'overshoot forecasts'

While today's figures suggest tax receipts came in relatively strongly in December, the growth in receipts over the year to date has still been disappointing relative to the Office for Budget Responsibility's forecast for the year as a whole.

This reflects, in particular, weak growth in receipts of income tax, capital gains tax and national insurance contributions so far this year.

In addition, central Government current spending has also grown slightly more quickly so far than was forecast for the whole year, largely due to spending on the administration and delivery of public services.

If these trends were to continue for the remaining three months of the financial year then borrowing this year could slightly overshoot the OBR's forecast, by around £3 billion.

– Institute for Fiscal Studies

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Labour: Government's policies have 'badly backfired'

David Cameron and George Osborne's economic plan is hurting, but it's not working. Their failure on jobs and growth means they are now failing on the one test they set themselves - to get the deficit and debt down.

Borrowing is rising and is over £7 billion higher than at the same point last year.

And this is borrowing to pay for economic failure as a flatlining economy and rising long-term unemployment have sent the welfare bill soaring and tax revenues have been revised down.

By squeezing families and businesses too hard, choking off the recovery and so pushing borrowing up not down, the government's economic policies have badly backfired.

– Rachel Reeves, Shadow Chief Secretary to the Treasury

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