Public sector net borrowing (PSNBX) is expected to come in at £8bn lower than the OBR forecast after a rebound in tax revenues and public spending cuts, according to the latest Ernst & Young ITEM Club report.
Chancellor George Osborne is set to enjoy the “unexpected” £8bn windfall that is expected to see full year HMRC receipts for 2010/11 come in £4bn ahead of forecast - largely due to robust growth in income tax, accounting for £3bn of the total overshoot.
The ITEM Club says that the government appears to be gaining more control over the public purse – with PSNBX forecast to come in at £140.2bn in 2010/11, compared with the Office for Budget Responsibility’s forecast of £148.5bn.
About Robert Lovell
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