UK public sector finances likely to print £7.5bn – RBC CM

Research Team at RBC Capital Markets, suggests that it wasn’t a great start to the financial year for UK with April borrowing of £7.2bn, larger than the £5.5bn we would have seen as being consistent with this year’s deficit target of £55.5bn.

Key Quotes

“Seasonally, May is a worse month for borrowing, so this time we would expect a very similar outturn of £7.5bn on the key deficit measure (PSNB ex banking groups). Any further revisions to 2015–16 aggregates would normally be noteworthy, as at £76bn the current estimate is £3.8bn over the OBR Budget forecast from March, but on this occasion such backward-looking news is likely to be drowned out by competing claims amongst EU referendum campaigners about the impact of Brexit on the public finances.”