Highest October borrowing for five years but total revised down

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As political parties pledge to spend more during the election campaign, the ONS reveals a leap in net borrowing last month.

The end of austerity has become a central theme of the election, with all the major parties planning to raise spending from current levels if they secure the keys to Number 10.

The Resolution Foundation think tank reacted to the ONS figures by claiming they would limit the ambitions of the victorious party. Its research director, James Smith, said:"The 2019 public finances deterioration provides a sobering backdrop to manifesto launches this week, alongside a wider weaker outlook for both domestic and global growth next year.

"With all main parties committed to balancing the books on current spending, this deterioration should be a reminder to whoever wins the election that the state of the public finances will continue to be a constraint on plans for higher public service spending or tax cuts in the next parliament." Samuel Tombs, chief UK economist at Pantheon Macroeconomics, predicted full-year borrowing should now hit around £45.6bn.He wrote:"Looking ahead, scope remains for fiscal stimulus next year, regardless of which party wins the upcoming election.

 

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