Cynnwys
- Other pages in this release
- Main points
- The impact of the coronavirus on the public finances
- Borrowing in October 2020
- Central government net cash requirement
- Debt
- Revisions
- Public sector finances data
- Glossary
- Measuring the data
- Strengths and limitations
- Challenges of measuring the effects of the coronavirus pandemic on tax receipts
- Related links
1. Other pages in this release
2. Main points
Public sector net borrowing (excluding public sector banks, PSNB ex) is estimated to have been £22.3 billion in October 2020, £10.8 billion more than in October 2019, which is both the highest October borrowing and the sixth-highest borrowing in any month since monthly records began in 1993.
Central government tax receipts are estimated to have been £39.7 billion in October 2020 (on a national accounts basis), £2.7 billion less than in October 2019, with falls in Value Added Tax (VAT), Business Rates and Pay As You Earn (PAYE) income tax.
Central government bodies are estimated to have spent £71.3 billion on day-to-day activities (current expenditure) in October 2020, £6.4 billion more than in October 2019; this growth includes £1.3 billion in Coronavirus Job Retention Scheme (CJRS) and £0.3 billion in Self Employment Income Support Scheme (SEISS) payments.
Public sector net borrowing (PSNB ex) in the first seven months of this financial year (April to October 2020) is estimated to have been £214.9 billion, £169.1 billion more than in the same period last year and the highest public sector borrowing in any April to October period since records began in 1993.
Our estimates expressed as a percentage of GDP are partially based on official projections, which means figures for recent periods are subject to revision particularly in light of the uncertain impacts of the coronavirus pandemic on the economy.
Public sector net debt excluding public sector banks (PSND ex) rose by £276.3 billion in the first seven months of the financial year to reach £2,076.8 billion at the end of October 2020, or around 100.8% of gross domestic product (GDP); debt to GDP ratios in recent months have reached levels last seen in the early 1960s.
General government net borrowing in the first seven months of this financial year (April to October 2020) is estimated to have been around 9.9% GDP, while general government gross debt stood at around 104.7% of GDP at the end of October 2020; statistics for the general government sector are used for international comparisons and include central and local government only.
Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £14.4 billion in October 2020, bringing the current financial year-to-October total to £260.8 billion, nearly three times the highest cash requirement in any other April to October period (since records began in 1984).
4. Borrowing in October 2020
In October 2020, the public sector spent more money than it received in taxes and other income, requiring it to borrow £22.3 billion, £10.8 billion more than it borrowed in October 2019.
Figure 3: The substantial increases in borrowing in recent months reflect the emerging effects of government coronavirus policies
Public sector net borrowing excluding public sector banks, UK, cumulative financial year-to-date (April to October 2020) compared with the financial year ending 2020 (April 2019 to March 2020)
Source: Office for National Statistics – Public Sector Finances
Download this chart Figure 3: The substantial increases in borrowing in recent months reflect the emerging effects of government coronavirus policies
Image .csv .xlsTable 1 summarises the components of public sector net borrowing (excluding public sector banks) in October 2020 and compares them with the equivalent measures in the same month a year earlier. Additionally, the table presents estimates of the borrowing of public sector banks and the full public sector net borrowing measure.
Borrowing estimates in the current financial year (April to October 2020) are subject to more uncertainty than usual as a result of the challenges we face in collecting data during the coronavirus (COVID-19) pandemic and because some estimates are based on official projections that are more uncertain than usual.
£ billion | ||||
---|---|---|---|---|
October 2019 | October 2020 | Change | % change | |
Central Government Current Receipts | 60.5 | 58.8 | -1.7 | -2.8 |
Taxes on production: Total | 24.6 | 21.5 | -3.2 | -12.9 |
Taxes on production: VAT | 13.5 | 12.0 | -1.6 | -11.7 |
Taxes on production: Fuel Duty | 2.3 | 2.1 | -0.2 | -7.4 |
Taxes on production: Alcohol | 1.2 | 0.8 | -0.4 | -30.5 |
Taxes on production: Tobacco | 0.6 | 0.9 | 0.2 | 33.6 |
Taxes on production: Business Rates | 2.5 | 1.6 | -0.8 | -33.9 |
Taxes on production: Stamp Duty (L&P)¹ | 1.1 | 0.8 | -0.3 | -26.6 |
Income Tax: Total² | 12.4 | 13.3 | 0.8 | 6.5 |
Income Tax: PAYE | 12.9 | 12.0 | -0.8 | -6.4 |
Income Tax: Self Assessment | 0.1 | 0.4 | 0.2 | 205.9 |
Corporation Tax | 3.5 | 3.2 | -0.3 | -9.7 |
Other Taxes | 1.7 | 1.8 | 0.0 | 2.1 |
Total Taxes | 42.4 | 39.7 | -2.7 | -6.3 |
Social contributions | 11.3 | 11.1 | -0.2 | -1.8 |
Interest & Dividends | 4.0 | 5.0 | 1.0 | 25.8 |
Other receipts | 2.9 | 3.0 | 0.1 | 4.1 |
Central Government Current Expenditure | 64.9 | 71.3 | 6.4 | 9.9 |
Interest³ | 6.5 | 2.0 | -4.4 | -68.6 |
Net social Benefits: Total | 18.1 | 19.9 | 1.8 | 9.9 |
Net social Benefits: Nat. Ins. Fund Benefits | 9.1 | 9.6 | 0.5 | 5.7 |
Net social Benefits: Social Assistance | 8.8 | 10.0 | 1.2 | 13.8 |
Other Current: Total | 40.3 | 49.4 | 9.1 | 22.5 |
Other Current: Procurement⁴ | 13.0 | 18.4 | 5.4 | 41.9 |
Other Current: Pay | 11.8 | 12.8 | 1.1 | 9.1 |
Other Current: Transfers to LG | 9.9 | 10.1 | 0.2 | 2.2 |
Other Current: Contributions to EU | 1.1 | 1.1 | 0.0 | 1.5 |
Other Current: Subsidies | 1.6 | 4.3 | 2.7 | 171.9 |
Central Government Depreciation | 2.5 | 2.6 | 0.1 | 3.1 |
Central Government Net Investment | 1.9 | 3.8 | 1.9 | 96.5 |
Central Government Net Borrowing | 8.8 | 18.9 | 10.1 | 114.7 |
Local Government Net Borrowing | 0.4 | 0.9 | 0.5 | 109.7 |
Public Corporations Net Borrowing | 0.0 | -0.1 | -0.1 | -291.2 |
Public Sector Pensions Net Borrowing | -0.2 | -0.1 | 0.1 | 32.5 |
Public Sector Net Borrowing ex BoE and Banks | 9.0 | 19.6 | 10.5 | 116.3 |
Bank of England Net Borrowing | 2.5 | 2.8 | 0.3 | 10.6 |
Public Sector Net Borrowing ex⁵ | 11.5 | 22.3 | 10.8 | 93.5 |
Public Sector Banks Net Borrowing | -0.7 | -0.7 | 0.0 | 0.0 |
Public Sector Net Borrowing | 10.8 | 21.6 | 10.8 | 99.9 |
Download this table Table 1: How each sector contributes to the growth in monthly borrowing
.xls .csvCentral government
Central government is the largest sub-sector of the public sector. Of the £22.3 billion borrowed by the public sector in October 2020, £18.9 billion was borrowed by central government.
Central government receipts
In October 2020, central government receipts were estimated to have fallen by £1.7 billion compared with October 2019 to £58.8 billion, including £39.7 billion in tax receipts. In the most recent months, tax receipts recorded on an accrued (or national accounts) basis are always subject to some uncertainty, as many taxes such as Value Added Tax (VAT), Corporation Tax and Pay As You Earn (PAYE) Income Tax contain some forecast cash receipts data and are liable to revision when actual cash receipts data are received.
Figure 4: Central government receipts continue to fall compared with the same period last year
Central government current receipts, UK, the current financial year-to-date (April to October 2020) compared with the financial year ending 2020 (April 2019 to March 2020)
Source: Office for National Statistics – Public Sector Finances
Download this chart Figure 4: Central government receipts continue to fall compared with the same period last year
Image .csv .xlsCentral government expenditure
Central government bodies spent £75.1 billion in October 2020, £8.3 billion more than in October 2019. Of this, £71.3 billion was spent on day-to-day activities (often referred to as current expenditure), such as:
- providing services and grants (for example, related to education, defence, and health and social care) – including the current job furlough schemes
- payment of social benefits (such as pensions, unemployment payments, Child Benefit and Statutory Maternity Pay)
- payment of the interest on the government’s outstanding debt
The remaining £3.8 billion was spent on capital investment such as infrastructure.
Figure 5: Central government current expenditure continues to rise substantially compared with the same period last year
Central government current expenditure, UK, financial year-to-October 2020 compared with the financial year ending March 2020 (April 2019 to March 2020)
Source: Office for National Statistics – Public Sector Finances
Download this chart Figure 5: Central government current expenditure continues to rise substantially compared with the same period last year
Image .csv .xlsCentral government’s expenditure on goods and services
Central government departments spent £6.3 billion more on goods and services in October 2020 than in October 2019, including £5.4 billion more on procurement and £1.1 billion more on pay. These increases partially reflect the expenditure by the Department of Health and Social Care (DHSC), devolved administrations and other departments in response to the coronavirus pandemic.
Subsidies paid by central government
In October 2020, central government paid £4.3 billion in subsidies to businesses and households. These payments included £1.3 billion as a part of the Coronavirus Job Retention Scheme (CJRS) and £0.3 billion as part of the Self Employment Income Support Scheme (SEISS). On 5 November 2020, the government announced the extension of both its job furlough schemes to the end of March 2021.
Interest payments on the central government’s outstanding debt
Interest payments on the government’s outstanding debt were £2.0 billion in October 2020, £4.4 billion less than in October 2019. Changes in debt interest are largely a result of movements in the Retail Prices Index to which index-linked bonds are pegged.
Local government and public corporations
Both local government and public corporations data for October 2020 are initial estimates, largely based on the Office for Budget Responsibility’s (OBR’s) Coronavirus Reference Scenario (14 July 2020) and Fiscal Sustainability Report (July 2020), which will be revised when further information is available.
Subsidies paid out to businesses as part of the Coronavirus Small Business Grant Fund, the Coronavirus Retail, Hospitality and Leisure Grant Fund, the Coronavirus Local Authority Discretionary Grants, and similar schemes in devolved administrations, are included based on administrative data published by the Ministry of Housing, Communities and Local Government (MHCLG) and by the Scottish and Welsh Governments.
Current and capital transfers between these sub-sectors and central government are based on administrative data supplied by HM Treasury and have no impact at the public sector level.
Borrowing in the current financial year-to-date
In the current financial year to October 2020, the public sector borrowed £214.9 billion, £169.1 billion more than in the same period last year.
This substantial increase largely reflects the impact of the pandemic on the public finances, with the furlough schemes (CJRS and SEISS) alone adding £54.4 billion to borrowing in the financial year-to-October 2020.
Coronavirus Job Retention Scheme (CJRS) payments on an accrued (or national accounts) basis for the period March to October 2020 are based on HM Revenue and Customs (HMRC) estimates. SEISS payments are currently recorded on a cash basis, reflecting HMRC coronavirus statistics.
During August 2020, the government ran its Eat Out to Help Out scheme, which offered a discount to diners. This discount, provisionally estimated at £0.5 billion was reimbursed to participating businesses by HMRC and, like CJRS and SEISS, is recorded as subsidy paid by central government.
Further, on 8 July 2020, the government announced that it would introduce a temporary reduction of VAT rate in certain hospitality sectors from 15 July 2020 to 12 January 2021, subsequently extended to 31 March 2022.
Table 2 summarises the components of public sector net borrowing (excluding public sector banks) in the financial year-to-October 2020 and compares them with the equivalent measures in the same period a year earlier. Additionally, the table presents estimates of the borrowing of public sector banks and the full public sector net borrowing measure.
£ billion | ||||
---|---|---|---|---|
Financial year-to-date⁶ | ||||
2019/20 | 2020/21 | Change | % change | |
Central Government Current Receipts | 427.5 | 390.1 | -37.4 | -8.8 |
Taxes on production: Total | 168.4 | 142.2 | -26.3 | -15.6 |
Taxes on production: VAT | 91.2 | 80.3 | -11.0 | -12.0 |
Taxes on production: Fuel Duty | 16.4 | 12.2 | -4.2 | -25.5 |
Taxes on production: Alcohol | 7.2 | 7.4 | 0.3 | 3.5 |
Taxes on production: Tobacco | 5.2 | 5.3 | 0.0 | 0.2 |
Taxes on production: Business Rates | 17.2 | 11.4 | -5.8 | -33.6 |
Taxes on production: Stamp Duty (L&P)¹ | 7.4 | 4.5 | -2.9 | -38.6 |
Income Tax: Total² | 100.9 | 96.8 | -4.1 | -4.0 |
Income Tax: PAYE | 92.0 | 92.2 | 0.2 | 0.2 |
Income Tax: Self Assessment | 11.3 | 6.5 | -4.7 | -41.9 |
Corporation Tax | 30.9 | 26.0 | -4.9 | -15.8 |
Other Taxes | 11.8 | 11.1 | -0.7 | -6.0 |
Total Taxes | 312.4 | 276.4 | -36.0 | -11.5 |
Social contributions | 80.9 | 78.6 | -2.3 | -2.8 |
Interest & Dividends | 13.8 | 14.4 | 0.6 | 4.4 |
Other receipts | 20.4 | 20.6 | 0.3 | 1.4 |
Central Government Current Expenditure | 433.0 | 556.5 | 123.5 | 28.5 |
Interest³ | 33.9 | 24.1 | -9.9 | -29.1 |
Net social Benefits: Total | 127.4 | 139.0 | 11.6 | 9.1 |
Net social Benefits: Nat. Ins. Fund Benefits | 64.5 | 68.5 | 4.0 | 6.1 |
Net social Benefits: Social Assistance | 59.3 | 68.3 | 9.0 | 15.2 |
Other Current: Total | 271.7 | 393.5 | 121.8 | 44.8 |
Other Current: Procurement⁴ | 87.1 | 115.3 | 28.2 | 32.4 |
Other Current: Pay | 80.9 | 87.1 | 6.2 | 7.7 |
Other Current: Transfers to LG | 67.8 | 88.0 | 20.2 | 29.8 |
Other Current: Contributions to EU | 6.7 | 7.7 | 1.1 | 16.2 |
Other Current: Subsidies | 11.2 | 74.5 | 63.3 | 562.9 |
Central Government Depreciation | 17.4 | 18.0 | 0.6 | 3.4 |
Central Government Net Investment | 23.4 | 31.7 | 8.3 | 35.3 |
Central Government Net Borrowing | 46.4 | 216.2 | 169.8 | 366.4 |
Local Government Net Borrowing | 0.3 | -1.3 | -1.5 | -572.1 |
Public Corporations Net Borrowing | 0.0 | -0.3 | -0.3 | -572.3 |
Public Sector Pensions Net Borrowing | -1.1 | -0.8 | 0.4 | 31.9 |
Public Sector Net Borrowing ex BoE and Banks | 45.5 | 213.8 | 168.4 | 370.4 |
Bank of England Net Borrowing | 0.3 | 1.1 | 0.8 | 245.8 |
Public Sector Net Borrowing ex⁵ | 45.8 | 214.9 | 169.1 | 369.5 |
Public Sector Banks Net Borrowing | -5.0 | -5.1 | -0.1 | -2.0 |
Public Sector Net Borrowing | 40.7 | 209.8 | 169.0 | 415.0 |
Download this table Table 2: How each sector contributes to the growth in borrowing
.xls .csvBorrowing in the latest full financial year
Borrowing had generally been falling since its peak in the financial year ending (FYE) 2010. However, the £56.1 billion borrowed in the latest full financial year (April 2019 to March 2020) was £17.1 billion more in the previous financial year, largely because of the impact of the pandemic evident from March 2020.
Figure 6: After several years of falling borrowing, we are now seeing a substantial increase because of the impact of the coronavirus on government receipts and spending
Public sector net borrowing excluding public sector banks, UK, April 1993 to October 2020
Source: Office for National Statistics – Public Sector Finances
Notes:
- Financial year 2019 to 2020 represents the FYE 2020 (April 2019 to March 2020).
- Financial year-to-date represents April to October 2020.
Download this chart Figure 6: After several years of falling borrowing, we are now seeing a substantial increase because of the impact of the coronavirus on government receipts and spending
Image .csv .xlsThe borrowing estimates presented in this bulletin are not adjusted for inflation. We recommend that users consider borrowing as a percentage of gross domestic product (GDP) when analysing its movements over a long period.
Figure 7: Borrowing as a percentage of GDP in the financial year-to-October was 10.2%, 8.2 percentage-points above the same period in 2019
Public sector net borrowing excluding public sector banks as a percentage of GDP, UK, April 1993 to October 2020
Source: Office for National Statistics – Public Sector Finances
Notes:
- Financial year 2019 to 2020 represents the FYE 2020 (April 2019 to March 2020).
- Financial year-to-date represents April to October 2020.
Download this chart Figure 7: Borrowing as a percentage of GDP in the financial year-to-October was 10.2%, 8.2 percentage-points above the same period in 2019
Image .csv .xls5. Central government net cash requirement
The central government net cash requirement (CGNCR) excluding UK Asset Resolution Ltd and Network Rail is the amount of cash needed immediately for the UK government to meet its obligations. To obtain cash, the UK government sells financial instruments, gilts or Treasury Bills.
The amount of cash required will be affected by changes in the timing of tax payments by individuals and businesses but does not depend on forecast tax receipts in the same way as our accrued (or national accounts) based measures.
The CGNCR consequently contains the most timely information and is less susceptible to revision. However, as for any cash measure, the CGNCR does not reflect the overall amount for which the government is liable or the point at which any liability is incurred – it only reflects when cash is received and spent.
On 20 March 2020, the government introduced a Value Added Tax (VAT) payment deferral policy to support UK business during the coronavirus (COVID-19) pandemic by enabling them to pay Value Added Tax (VAT) due between 20 March and 30 June 2020 at a later date (though before 31 March 2022). This policy has substantially lowered VAT cash receipts over this four-month period.
Tables 3 and 4 demonstrate how CGNCR is calculated from cash receipts and cash outlays. This presentation focuses on the central government’s own account and excludes cash payments to both local government and public non-financial corporations.
£ billion | ||||
---|---|---|---|---|
October 2019 | October 2020 | Change | % change | |
Cash Receipts | ||||
HMRC Receipts: Total paid over¹ | 53.7 | 49.6 | -4.1 | -7.7 |
HMRC Receipts: Income tax² | 12.8 | 13.5 | 0.7 | 5.3 |
HMRC Receipts: NICs³ | 11.6 | 11.3 | -0.3 | -2.3 |
HMRC Receipts: VAT⁴ | 13.6 | 13.4 | -0.2 | -1.1 |
HMRC Receipts: Corporation tax⁵ | 8.9 | 3.9 | -5.0 | -56.5 |
Interest & Dividends Receipts | 4.0 | 5.0 | 1.0 | 26.0 |
Other Receipts⁶ | -0.8 | 2.7 | 3.5 | 454.6 |
Total Cash Receipts | 57.0 | 57.4 | 0.4 | 0.8 |
Cash Outlays | ||||
Interest Payments | 0.9 | 1.4 | 0.5 | 50.7 |
Net Acquisition of Company Securities⁷ | 0.0 | 0.0 | 0.0 | - |
Net Department Outlays: Total⁸ | 56.0 | 70.4 | 14.4 | 25.7 |
Net Department Outlays: CJRS⁹ | 0.0 | 2.1 | 2.1 | - |
Net Department Outlays: SEISS¹⁰ | 0.0 | 0.3 | 0.3 | - |
Total Cash Outlays | 56.9 | 71.7 | 14.8 | 26.1 |
Cash Balance | ||||
Own account Net Cash Requirement ex ¹¹ | -0.1 | 14.4 | 14.4 | 26,196.4 |
NRAM and B&B | 0.0 | 0.1 | 0.0 | 211.1 |
Network Rail | 0.0 | 0.0 | 0.0 | - |
Own account Net Cash Requirement¹² | 0.0 | 14.4 | 14.4 | 65,663.6 |
Download this table Table 3: Central government net cash requirement on own account
.xls .csv
£ billion | ||||
---|---|---|---|---|
Financial year-to-date¹³ | ||||
2019/20 | 2020/21 | Change | % change | |
Cash Receipts | ||||
HMRC Receipts: Total paid over¹ | 344.5 | 277.5 | -67.0 | -19.5 |
HMRC Receipts: Income tax² | 106.8 | 99.0 | -7.8 | -7.3 |
HMRC Receipts: NICs³ | 82.9 | 79.7 | -3.2 | -3.9 |
HMRC Receipts: VAT⁴ | 80.0 | 41.4 | -38.6 | -48.3 |
HMRC Receipts: Corporation tax⁵ | 37.2 | 25.4 | -11.8 | -31.8 |
Interest & Dividends Receipts | 14.1 | 14.1 | 0.1 | 0.5 |
Other Receipts⁶ | 11.2 | 14.0 | 2.7 | 24.4 |
Total Cash Receipts | 369.8 | 305.6 | -64.2 | -17.4 |
Cash Outlays | ||||
Interest Payments | 19.3 | 28.6 | 9.3 | 47.8 |
Net Acquisition of Company Securities⁷ | -4.3 | 0.0 | 4.3 | - |
Net Department Outlays: Total⁸ | 382.2 | 537.9 | 155.7 | 40.7 |
Net Department Outlays: CJRS⁹ | 0.0 | 41.6 | 41.6 | - |
Net Department Outlays: SEISS¹⁰ | 0.0 | 13.5 | 13.5 | - |
Total Cash Outlays | 397.2 | 566.5 | 169.3 | 42.6 |
Cash Balance | ||||
Own account Net Cash Requirement ex¹¹ | 27.4 | 260.9 | 233.5 | 851.3 |
NRAM and B&B | 0.5 | -0.1 | -0.5 | -114.8 |
Network Rail | 0.1 | 0.1 | 0.0 | 0.0 |
Own account Net Cash Requirement ¹² | 28.0 | 261.0 | 233.0 | 831.8 |
Download this table Table 4: Central government net cash requirement on own account
.xls .csvOn the same day that we release the public sector finances, HM Revenue and Customs (HMRC) publishes a Summary of HMRC tax receipts, National Insurance contributions (NICs), tax credit expenditure and Child Benefit for the UK containing a detailed list of cash receipts.
Nôl i'r tabl cynnwys6. Debt
Public sector net debt (excluding public sector banks) rose by £276.3 billion in the first seven months of the financial year to reach £2,076.8 billion at the end of October 2020, £283.8 billion more than in October 2019.
The extra funding required to support government coronavirus support schemes combined with reduced cash receipts and a fall in gross domestic product (GDP) have all helped push public sector net debt as a ratio of GDP to levels last seen in the early 1960s. Public Sector Net Debt (excluding public sector banks) at the end of October 2020 was equivalent to 100.8% of GDP.
Figure 8: Debt as a ratio of GDP has increased considerably during the coronavirus pandemic
Public sector net debt excluding public sector banks, UK, March 1994 to the end of October 2020
Source: Office for National Statistics – Public Sector Finances
Download this chart Figure 8: Debt as a ratio of GDP has increased considerably during the coronavirus pandemic
Image .csv .xlsDebt represents the amount of money owed by the public sector to the private sector and is largely made up of gilts (or bonds) issued to investors by central government.
At the end of October 2020, there was £1,774.9 billion of central government gilts in circulation (including those held by the Bank of England (BoE) Asset Purchase Facility Fund). These gilts are auctioned by the Debt Management Office (DMO), on behalf of central government in accordance with its financing remit.
There has been a substantial month-on-month increase in gilts issuance at face (or redemption) value in the current financial year, partially reflecting the need for extra funding to support government coronavirus (COVID-19) support schemes and to compensate for the fall in tax revenue.
The Bank of England’s contribution to debt
The Bank of England (BoE)’s contribution to debt is largely a result of its quantitative easing activities via the BoE Asset Purchase Facility Fund (APF) and Term Funding Schemes (TFS).
If we were to remove the temporary debt impact of these schemes along with the other transactions relating to the normal operations of the BoE, public sector net debt excluding public sector banks (PSND ex) at the end of October 2020 would reduce by £232.9 billion (or 11.3 percentage points of GDP) to £1,843.9 billion (or 89.5% of GDP).
Figure 9: At the end of October 2020, the Bank of England contributed £232.9 billion to public sector net debt
Public sector net debt excluding public sector banks, UK, March 1994 to the end of October 2020
Source: Office for National Statistics – Public Sector Finances
Notes:
- Includes Asset Purchase Facility (APF), which includes the Term Funding Scheme (TFS) and TFS incentives for small- and medium-sized enterprises (TFS SME).
- Public sector net debt excluding public sector banks (PSND ex) is the combination of PSND ex Bank of England (BoE) plus the BoE’s contribution to PSND ex.
- Public sector net debt excluding public sector banks (PSND ex) shown at the end of each financial year (March), unless otherwise stated.
Download this chart Figure 9: At the end of October 2020, the Bank of England contributed £232.9 billion to public sector net debt
Image .csv .xlsBank of England Asset Purchase Facility Fund
Gilts are the primary financial instrument purchased under the APF. At the end of October 2020, the gilt holdings of the APF were £584.8 billion at face (or redemption) value, an increase of £15.6 billion compared with a month earlier. Following a government announcement on 5 November 2020, the gilt holdings of the APF are currently capped at £875 billion.
The estimated impact of the APF’s gilt holdings on debt currently stands at £107.8 billion, representing the difference between the value of the reserves created to purchase gilts (or market value of the gilts) and the face (or redemption) value of the gilts purchased.
In this case, it is not the gilt holdings themselves that contribute to debt but the difference in the valuations for these assets. The final debt impact of the APF depends on the disposal of these financial instruments at the end of the scheme (more specifically the price received at their re-sale compared with their purchase price).
Corporate bond purchases under the APF umbrella have been on a smaller scale than gilt purchases. The total corporate bond holdings at end of October 2020 stood at £20.1 billion, adding an equivalent amount to the level of debt.
Term Funding Scheme (TFS) and Term Funding Scheme with additional incentives for small and medium-sized enterprises (TFSME)
The Term Funding Schemes aim to reinforce the transmission of Bank Rate cuts to those interest rates faced by households and businesses.
The public sector balance sheet contains a liability as a result of the creation of the central bank reserves and an asset as a result of the loans to TFS (and TFSME) participants
At the end of October 2020, TFS loan liability stood at £70.7 billion and TFSME loan liability stood at £48.5 billion making a combined liability of £119.2 billion, adding an equivalent amount to the level of debt.
Assets purchased under the TFS and TFSME fall outside the boundary of PSNDex: users who are interested in wider measures of the public sector balance sheet may find estimates of Public Sector Net Financial Liabilities (PSNFL) of interest.
Nôl i'r tabl cynnwys7. Revisions
The data for the latest months of every release contain a degree of forecasts; subsequently, these are replaced by improved forecasts as further data are made available, and finally by outturn data.
The coronavirus (COVID-19) pandemic has had a substantial impact on both tax receipts and expenditure. These impacts are likely to be revised further as the full effects of the coronavirus pandemic on the public finances continue to become clearer.
The revisions presented in this section are largely the result of new tax and expenditure data received from our data suppliers.
Table 5A shows the revisions to net borrowing presented in this bulletin compared with those presented in the previous bulletin (published on 21 October 2020).
£ billion (not seasonally adjusted) | ||||||
---|---|---|---|---|---|---|
Net borrowing | ||||||
Period | Cental Government | Local Government | Public Corporations | Pensions¹ | BoE² | Public Sector |
Financial year | ||||||
2018/19 | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.1 |
2019/20 | 1.5 | 0.0 | 0.0 | 0.0 | 0.0 | 1.5 |
Current financial year-to-date | ||||||
2020/21 | -15.7 | -0.1 | 0.0 | 0.0 | 0.0 | -15.9 |
Month | ||||||
2020 Apr | -0.6 | 0.0 | 0.0 | 0.0 | 0.0 | -0.6 |
2020 May | 0.1 | 0.0 | 0.0 | 0.0 | 0.0 | 0.0 |
2020 Jun | -0.2 | 0.0 | 0.0 | 0.0 | 0.0 | -0.3 |
2020 Jul | -1.8 | 0.0 | 0.0 | 0.0 | 0.0 | -1.9 |
2020 Aug | -5.7 | 0.0 | 0.0 | 0.0 | 0.0 | -5.7 |
2020 Sep | -7.5 | 0.0 | 0.0 | 0.0 | 0.0 | -7.5 |
Download this table Table 5a: Revisions to netborrowing since the previous public sector finances bulletin (published 21 October 2020), UK
.xls .csvTable 5B shows the revisions to public sector net debt and net cash requirement presented in this bulletin compared with those presented in the previous bulletin (published on 21 October 2020).
£ billion (not seasonally adjusted) unless otherwise stated | |||
---|---|---|---|
Period | Net Debt | Net Debt % GDP¹ | Net Cash Requirement |
Financial year | |||
2018/19 | 0.0 | 0.0 | 0.0 |
2019/20 | 0.0 | -1.7 | 0.0 |
Current financial year-to-date | |||
2020/21 | -1.2 | -2.3 | 0.0 |
Month | |||
2020 Apr | 0.0 | -1.9 | 0.0 |
2020 May | 0.0 | -2.0 | 0.0 |
2020 Jun | 0.0 | -2.1 | 0.0 |
2020 Jul | 0.0 | -2.1 | 0.0 |
2020 Aug | -1.0 | -2.2 | -0.1 |
2020 Sep | -1.2 | -2.3 | 0.1 |
Download this table Table 5b: Revisions to public sector financial account aggregates since the previous public sector finances bulletin (published 21 October 2020), UK
.xls .csvPublic sector net borrowing (excluding public sector banks) in the financial year-to-September 2020
This month we have reduced our previous estimate of borrowing in the financial year-to-September 2020 by £15.9 billion, largely because of a £5.7 billion increase to the previous estimates of Value Added Tax (VAT) receipts and a £6.9 billion reduction to the previous estimates of expenditure on the Coronavirus Job Retention Scheme (CJRS ) (recorded as a subsidy paid by central government).
VAT receipts
VAT receipts for any month are normally recorded on an accrued (or national accounts) basis by time-adjusting the average cash receipts expected in the following three months. This means that, for example, VAT receipts on an accrued basis in October depend on forecast cash receipts for November, December and January. These are updated as actual receipts become known.
VAT cash receipts are currently substantially outperforming those estimated in the OBR’s Fiscal Sustainability Report (FSR) and summer economic update monthly profiles – 21 August 2020 (XLS, 201KB) on which our current forecasts are based. In November 2020 HMRC, ONS, HMT and the OBR determined that an exceptional adjustments would be applied to the estimates of accrued VAT receipts for August, September and October 2020.
These exceptional adjustments are needed because cash receipts in recent months have been higher than was anticipated in the OBR forecasts. We will continue to review and apply adjustments to future months as necessary.
Section 11 explains the challenges of measuring the effects of the coronavirus pandemic on tax receipts and discusses the recording of tax receipts in some detail.
CJRS payments
This month we have reduced our previous estimate of CJRS payments on an accrued (or national accounts) basis for the period March to October 2020.
Previously, data for the period March to June were based on HMRC’s initial estimates while data for the period July to September were based on OBR projections. These estimates have been replaced with updated HM Revenue and Customs (HMRC) estimates.
Table 6 shows how each element of the public sector contributes to the revisions in borrowing compared with our previous publication (21 October 2020). The table presents revisions to both the financial year-to-September 2020 and to September 2020 alone.
£ billion | ||||||
---|---|---|---|---|---|---|
September | Financial year-to-date⁶ | |||||
Previous | Latest | Change | Previous | Latest | Change | |
Central Government Current Receipts | 52.5 | 56.1 | 3.6 | 325.2 | 331.2 | 6.1 |
Taxes on production: Total | 18.3 | 21.4 | 3.1 | 114.6 | 120.7 | 6.1 |
Taxes on production: VAT | 9.0 | 12.0 | 2.9 | 62.6 | 68.3 | 5.7 |
Taxes on production: Fuel Duty | 2.1 | 2.1 | 0.0 | 9.9 | 10.1 | 0.1 |
Taxes on production: Alcohol | 0.7 | 1.1 | 0.4 | 6.2 | 6.6 | 0.4 |
Taxes on production: Tobacco | 0.9 | 0.8 | 0.0 | 4.4 | 4.4 | 0.0 |
Taxes on production: Business Rates | 1.6 | 1.6 | 0.0 | 9.8 | 9.8 | 0.0 |
Taxes on production: Stamp Duty (L&P)¹ | 0.8 | 0.8 | 0.0 | 3.7 | 3.7 | 0.0 |
Income Tax: Total² | 13.5 | 13.6 | 0.1 | 83.5 | 83.6 | 0.1 |
Income Tax: PAYE | 13.4 | 13.9 | 0.5 | 79.6 | 80.1 | 0.5 |
Income Tax: Self Assessment | 0.4 | 0.4 | 0.0 | 6.2 | 6.2 | 0.0 |
Corporation Tax | 3.9 | 4.2 | 0.3 | 23.1 | 22.9 | -0.2 |
Other Taxes | 1.8 | 1.9 | 0.0 | 9.3 | 9.3 | 0.0 |
Total Taxes | 37.7 | 41.1 | 3.4 | 230.8 | 236.7 | 5.8 |
Social contributions | 11.4 | 11.6 | 0.2 | 67.3 | 67.5 | 0.2 |
Interest & Dividends | 0.5 | 0.5 | 0.0 | 9.4 | 9.4 | 0.0 |
Other receipts | 2.9 | 2.9 | 0.0 | 17.6 | 17.6 | 0.0 |
Central Government Current Expenditure | 77.8 | 73.9 | -3.9 | 494.2 | 485.2 | -8.9 |
Interest3 | 4.9 | 4.9 | 0.1 | 22.0 | 22.0 | 0.1 |
Net social Benefits: Total | 21.6 | 21.5 | -0.1 | 119.3 | 119.1 | -0.3 |
Net social Benefits: Nat. Ins. Fund Benefits | 11.3 | 11.3 | 0.0 | 59.0 | 58.9 | -0.1 |
Net social Benefits: Social Assistance | 9.8 | 9.8 | 0.0 | 58.4 | 58.4 | 0.0 |
Other Current: Total | 51.3 | 47.5 | -3.9 | 352.9 | 344.1 | -8.7 |
Other Current: Procurement⁴ | 17.1 | 16.5 | -0.7 | 98.1 | 96.9 | -1.2 |
Other Current: Pay | 12.5 | 12.5 | -0.1 | 74.7 | 74.3 | -0.4 |
Other Current: Transfers to LG | 9.1 | 9.0 | -0.1 | 77.9 | 77.9 | 0.0 |
Other Current: Contributions to EU | 0.9 | 0.9 | 0.0 | 6.7 | 6.7 | 0.0 |
Other Current: Subsidies | 8.8 | 5.8 | -3.0 | 77.2 | 70.2 | -7.0 |
Central Government Depreciation | 2.6 | 2.6 | 0.0 | 15.4 | 15.4 | 0.0 |
Central Government Net Investment | 7.5 | 7.6 | 0.1 | 28.6 | 27.9 | -0.7 |
Central Government Net Borrowing | 35.5 | 28.0 | -7.5 | 213.0 | 197.3 | -15.7 |
Local Government Net Borrowing | 2.3 | 2.3 | 0.0 | -2.0 | -2.2 | -0.1 |
Public Corporations Net Borrowing | -0.2 | -0.2 | 0.0 | -0.2 | -0.2 | 0.0 |
Public Sector Pensions Net Borrowing | -0.1 | -0.1 | 0.0 | -0.6 | -0.6 | 0.0 |
Public Sector Net Borrowing ex BoE and Banks | 37.5 | 30.0 | -7.5 | 210.2 | 194.3 | -15.9 |
Bank of England Net Borrowing | -1.4 | -1.4 | 0.0 | -1.7 | -1.7 | 0.0 |
Public Sector Net Borrowing ex⁵ | 36.1 | 28.6 | -7.5 | 208.5 | 192.6 | -15.9 |
Public Sector Banks Net Borrowing | -0.7 | -0.7 | 0.0 | -4.4 | -4.4 | 0.0 |
Public Sector Net Borrowing | 35.4 | 27.9 | -7.5 | 204.1 | 188.2 | -15.9 |
Download this table Table 6: How each sub-sector contributes to the revision in public sector net borrowing
.xls .csvPublic sector net borrowing (excluding public sector banks) in the financial year ending 2020
This month we have increased our previous estimate of borrowing in the financial year ending (FYE) 2020 by £1.5 billion, largely because of a £2.1 billion reduction to the previous estimate of central government tax receipts and National Insurance contributions in this period.
On 5 November 2020, HMRC published their Trust Statement and Annual Report and Accounts (PDF, 16.2MB) . This regular exercise results in adjustments to previously published data for the period April 2019 to March 2020.
Further, this month we reduced our previous estimate of expenditure on current grants paid by central government to the private sector and rest of the world by £0.7 billion as new data replaced previous estimates.
Public sector net debt (excluding public sector banks)
This month we have reduced our previously published estimate of debt at the end of September 2020 by £1.2 billion to £2,058.5 billion. This was largely because of the reclassification of Registered Housing Associations in Northern Ireland with effect from August to the private non-financial corporations subsector, reducing public corporations’ net debt by £1.0 billion at the end of August and September 2020.
Public sector net debt (excluding public sector banks) as a ratio of GDP
This month we have updated our estimate of GDP in Quarter 3 (July to Sept ) 2020 based on the published GDP first quarterly estimate, UK: July to September 2020, increasing our previous estimate, based on Office for Budget Responsibility (OBR) projections, by £43.2 billion.
As a result, we have reduced our estimate of debt as a percentage of GDP at the end of September 2020 by 2.3 percentage points, from the 103.5% published last month to 103.5%.
Further, as a result of this increase in GDP, we have reduced our ratio of debt to GDP from January 2020 to date. We have published an article that explains how estimates of GDP are used to present debt and other headline measures.
Public sector net debt (including public sector banks)
Estimates of the net debt of public sector banks are derived from the balance sheet of these organisations, supplied to us by the Bank of England twice annually.
This month we have received a balance sheet covering the period January to June 2020 for the first time, reducing our previous estimate of the net debt of the public sector banks by £20.6 billion at the end of June 2020 and increasing our corresponding estimates of net cash requirement by £1.9 billion in each month from January 2020.
These data have enabled us to improve previous estimates of debt and to inform our current estimates beyond June 2020.
Nôl i'r tabl cynnwys8. Public sector finances data
Public sector finances borrowing by sub-sector
Dataset | Released 20 November 2020
An extended breakdown of public sector borrowing in a matrix format and estimates of total managed expenditure (TME).
Public sector finances tables 1 to 10: Appendix A
Dataset | Released 20 November 2020
The data underlying the public sector finances statistical bulletin are presented in the tables PSA 1 to 10.
Public sector finances revisions analysis on main fiscal aggregates: Appendix C
Dataset | Released 20 November 2020
Revisions analysis for central government receipts, expenditure, net borrowing and net cash requirement statistics for the UK over the last five years.
Public sector current receipts: Appendix D
Dataset | Released 20 November 2020
A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.
International Monetary Fund’s Government Finance Statistics framework in the public sector finances: Appendix E
Dataset | Released 20 November 2020
Presents the balance sheet, statement of operations and statement of other economic flows for public sector compliant with the Government Finance Statistics Manual 2014: GFSM 2014 presentation.
Impact of Pool Re and other classification, methodology and data changes introduced in September 2020: Appendix J
Dataset | Released 20 November 2020
Presents the impact of the classification, methodology and data changes introduced in September 2020 on our headline public sector measures.
HMRC tax receipts and National Insurance contributions for the UK
Dataset | Released 20 November 2020
Summary of HM Revenue and Customs (HMRC) tax receipts, National Insurance contributions (NICs), tax credit expenditure and Child Benefit for the UK on a cash basis.
9. Glossary
The public sector
In the UK, the public sector consists of six sub-sectors: central government, local government, public non-financial corporations, public sector pensions, the Bank of England (BoE) and public financial corporations (or public sector banks).
Public sector current budget deficit
Public sector current budget is the difference between revenue (mainly from taxes) and current expenditure, on an accrued (or national accounts) basis; it is the gap between current expenditure and current receipts (having taken account of depreciation). The current budget is in surplus when receipts are greater than expenditure.
Public sector net investment
Public sector net investment is the sum of all capital spending, mainly net acquisitions of capital assets and capital grants, less the depreciation of the stock of capital assets.
Public sector net borrowing
Public sector net borrowing excluding public sector banks (PSNB ex) measures the gap between revenue raised (current receipts) and total spending (current expenditure plus net investment (capital spending less capital receipts)). PSNB is often referred to by commentators as “the deficit”.
Public sector net cash requirement
The public sector net cash requirement (PSNCR) represents the cash needed to be raised from the financial markets over a period of time to finance the government’s activities. This can be close to the deficit for the same period; however, there are some transactions, for example, loans to the private sector, that need to be financed but do not contribute to the deficit. It is also close but not identical to the changes in the level of net debt between two points in time.
Public sector net debt
Public sector net debt excluding public sector banks (PSND ex) represents the amount of money the public sector owes to private sector organisations including overseas institutions, largely as a result of issuing gilts and Treasury Bills, minus the amount of cash and other short-term assets it holds. PSND is often referred to by commentators as “the national debt”.
Debt interest to revenue ratio
The debt interest to revenue ratio (DIR) represents the proportion of net interest paid (gross interest paid less interest received) by the public sector (excluding public sector banks), compared with the non-interest receipts it receives in a given period.
Other important terms commonly used to describe public sector finances are listed in the Public sector finances glossary.
Nôl i'r tabl cynnwys10. Measuring the data
The Monthly statistics on the public sector finances: a methodological guide provides comprehensive contextual and methodological information concerning the monthly public sector finances statistical bulletin. The guide sets out the conceptual and fiscal policy context for the bulletin, identifies the main fiscal measures, and explains how these are derived and interrelated. Additionally, it details the data sources used to compile the monthly estimates of the fiscal position.
More quality and methodology information on strengths, limitations, appropriate uses, and how the data were created is available in the Public sector finances QMI.
Comparisons with official forecasts
The independent Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the government. These forecasts are usually produced twice a year, in spring and autumn. The most recent official forecasts, presented in the OBR’s Supplementary forecast (13 March 2020) were made before the full effects of the coronavirus (COVID-19) pandemic were apparent.
On 14 April 2020, the OBR published an illustrative three-month lockdown scenario that assessed the potential impact of the coronavirus pandemic on the economy and public finances. These estimates have been further refined as more information on the impact of the pandemic on the UK economy has developed.
The official OBR expectations for the financial year ending (FYE) 2020 presented in this bulletin reflect those published OBR’s Fiscal Sustainability Report and summer economic update monthly profiles – 21 August 2020 (XLS, 201KB). These projections will be superseded with official forecasts published by OBR on Wednesday 25 November 2020 in their Economic and fiscal outlook – November 2020. We will work with HMRC with the intention of reflecting these forecasts in the December 2020 Public sector finances release (published 22 January 2021).
Table 7 compares these expectations with our latest headline public sector finance fiscal aggregates.
£ billion unless otherwise stated (not seasonally adjusted) | |||||||
---|---|---|---|---|---|---|---|
October | Financial year-to-date | ||||||
Outturn October 2020 | OBR Scenario October 2020³ | Difference | Outturn year-to-date | OBR Scenario year-to-date³ | Difference | OBR Scenario full financial year 2020/21³ | |
CG¹ Receipts | 58.8 | 55.1 | 3.7 | 390.1 | 356.1 | 34.0 | 670.0 |
CG Current Expenditure | 71.3 | 76.1 | -4.8 | 556.5 | 597.5 | -41.0 | 947.2 |
CG Current Budget Deficit | 15.1 | 21.0 | -5.9 | 184.5 | 241.4 | -56.9 | 277.2 |
CG Net Investment | 3.8 | 3.9 | -0.1 | 31.7 | 50.5 | -18.8 | 79.9 |
CG Net Borrowing | 18.9 | 24.9 | -6.0 | 216.2 | 291.9 | -75.7 | 357.1 |
PS² Net Borrowing | 22.3 | 28.7 | -6.4 | 214.9 | 291.4 | -76.5 | 372.2 |
PS Net Debt | 2,076.8 | 2,177.8 | -101.0 | 2,076.8 | 2,177.8 | -101.0 | 2,254.6 |
PS Net Debt % of GDP | 100.8 | 109.2 | -8.4 | 100.8 | 109.2 | -8.4 | 106.4 |
Download this table Table 7: How the latest outturn public sector figures compare to official OBR expectations for the financial year ending March 2020 and for the month October 2020, UK
.xls .csvInternational comparisons
The UK government debt and deficit statistical bulletin is published quarterly (in January, April, July and October each year), to coincide with when EU member states are required to report their deficit (or net borrowing) and national debt to the European Commission.
On 19 October 2020, we published UK government debt and deficit: June 2020, consistent with Public sector finances, UK: August 2020 (published on 25 September 2020).
These statistics were published by Eurostat on 22 October 2020 alongside comparable data for each of the 27 EU member states for general government gross debt and borrowing.
Figure 10 illustrates how the recent change in UK general government consolidated gross debt (or Maastricht debt) compares with selected EU member states.
Measured according to the Maastricht definition, UK government debt increased by 11.2 percentage points of GDP between the end of December 2019 and the end of June 2020. This increase was higher than the average of the 27 EU member states.
Figure 10: The UK’s debt on a Maastricht basis grew by 11.2 percentage points between the end of June 2020 with December 2019
Maastricht debt at the end of June 2020 compared with the end of December 2019
Source: Eurostat and Office for National Statistics
Notes:
- EU 27 - Average of the 27 EU member states.
Download this chart Figure 10: The UK’s debt on a Maastricht basis grew by 11.2 percentage points between the end of June 2020 with December 2019
Image .csv .xlsDeparture from the EU
As the UK leaves the EU, it is important that our statistics continue to be of high quality and are internationally comparable. During the transition period, those UK statistics that align with EU practice and rules will continue to do so in the same way as before 31 January 2020.
These statistics, and our sector classification process, draw on the European System of Accounts (ESA) 2010, the Manual on Government Deficit and Debt, and associated guides.
After the transition period, we will continue to produce our public sector finance statistics in line with the UK Statistics Authority’s Code of Practice for Statistics and in accordance with internationally agreed statistical guidance and standards.
To ensure comparability with other countries, the statistical aggregates within the public sector finances release will continue to be produced according to the existing definitions and standards until further notice or those standards are updated.
Nôl i'r tabl cynnwys11. Strengths and limitations
National Statistics status for public sector finances
On 20 June 2017, the UK Statistics Authority published a letter confirming the designation of the monthly public sector finances bulletin as a National Statistic . This letter completes the 2015 assessment of public sector finances.
Gross domestic product (GDP)
Estimates of GDP used to present debt and other headline measures are partly based on provisional and official forecast data.
October 2020 requires data across five quarters of GDP. Of these, two are based on the latest Office for National Statistics (ONS) published data and three are based on official Office for Budget Responsibility (OBR) projections :
data up to and including Quarter 3 (July to Sept) 2020 are based on the published GDP first quarterly estimate, UK: July to September 2020.
estimates of GDP for the subsequent three calendar quarters (August 2020 to June 2021) are based on expectations published in the OBR’s Fiscal Sustainability Report and summer economic update monthly profiles – 21 August 2020 (XLS, 201KB)
Local government
Local government data for the financial year ending (FYE) 2020 are mainly based on budget data for England, Wales and Scotland, and estimates for Northern Ireland. Some provisional outturn data for FYE 2020 have been included where available (England capital expenditure).
In recent years, planned expenditure initially reported in local authority budgets has been systematically higher than the final outturn expenditure reported in the audited accounts. We therefore include adjustments to reduce the amounts reported at the budget stage.
For FYE 2020, we include a £2.0 billion downward adjustment to England’s current expenditure on goods and services, along with a £0.2 billion adjustment to Wales’ capital expenditure. We apply a further £2.3 billion downward adjustment to current expenditure on benefits in FYE 2020, to reflect the most recently available data for housing benefits. Further information on these and additional adjustments can be found in the Public sector finances QMI.
Local government data for FYE 2021 are initial estimates, based on OBR forecasts. These figures reflect our initial estimates of the impact of the coronavirus (COVID-19) pandemic. For FYE 2021, these estimates include a £3.0 billion upward adjustment to budget forecast data for England’s current expenditure on goods and services. We have included £0.5 billion and £0.2 billion downward adjustments to Scotland’s and Wales’ capital expenditure respectively. We apply a further £0.8 billion adjustment to budget forecast current expenditure on benefits in FYE 2021, to reflect the most recently available data for housing benefits.
Current and capital transfers between local and central government are based on administrative data supplied by HM Treasury.
Non-financial public corporations
Public corporations data for FYE 2021 are initial estimates, based on OBR forecasts. Current and capital transfers between public corporations and central government are based on administrative data supplied by HM Treasury.
Public sector funded pensions
Pensions data for FYEs 2020 and 2021 are our estimates based on the latest available data. Some of these estimates rely on actuarial modelling; this is a complex process that most public sector schemes conduct every three to four years. Until such valuations become available, we forecast the change in pension liability using our knowledge of the economic climate. Pensions in the public sector finances: a methodological guide outlines both the theory and practice behind our calculation of pension scheme estimates.
Public sector banks
Unless otherwise stated, the figures quoted in this bulletin exclude public sector banks (that is, currently only Royal Bank of Scotland, RBS). The reported position of debt, and to a lesser extent borrowing, would be distorted by the inclusion of RBS’ balance sheet (and transactions). This is because the government does not need to borrow to fund the debt of RBS, nor would surpluses achieved by RBS be passed on to the government, other than through any dividends paid as a result of the government equity holdings.
Nôl i'r tabl cynnwys