Public sector net borrowing rises to over £10bn in May ahead of comprehensive spending review

Public sector net borrowing has risen to £10.535bn in May, from £6.623bn (revised from £8.035bn). Economists had forecast a rise to £13.750bn (release).

  • In 2012/13, public sector net borrowing excluding temporary effects of financial interventions and also excluding the effects of the transfer of the Royal Mail Pension Plan and the transfers from the Bank of England Asset Purchase Facility Fund was £118.8 billion. This is similar in level to 2011/12.
  • In 2012/13, public sector net borrowing excluding temporary effects of financial interventions (PSNBex) was £85.0 billion. This is £33.5 billion lower than in 2011/12 when it was £118.5 billion.
  • In May 2013, public sector net borrowing excluding temporary effects of financial interventions and also excluding the effects of the transfers from the Bank of England Asset Purchase Facility Fund was £12.7 billion. This compares to a public sector net borrowing in May 2012 of £15.6 billion.
  • In May 2013, public sector net borrowing excluding temporary effects of financial interventions (PSNBex) was £8.8 billion. This is £6.9 billion lower than in May 2012 when it was £15.6 billion.
  • In May 2013, public sector net borrowing excluding temporary effects of financial interventions (PSNB ex) has been reduced by £3.9 billion from transfers from the Bank of England Asset Purchase Facility Fund and by £3.2 billion from retrospective tax payments by Swiss banks.
  • Public sector net debt ex temporary effects of financial interventions (PSND ex) was £1,189.2 billion at the end of May 2013, equivalent to 75.2% of gross domestic product (GDP).

Next week will see the government's Comprehensive Spending Review. This year’s review will include budgets for 2015-16 – after the next general election.

The last spending review, held shortly after the 2010 general election, saw the government set out substantial cuts to departmental budgets up to the end of the 2014-15 fiscal year.