The UK public sector's net borrowing requirement -excluding financial sector interventions- was -11.4bn pounds (a repayment) in January 2013, according to the latest data available from the Office for National Statistics (ONS).

The consensus estimate had been for a reading of -£7.3bn.

If interventions in the financial sector are included then public sector net borrowing came in at -£9.9bn, versus -£8.4bn a year ago and consensus expectations for a reading of- £9.5bn.

To be had in account, today's figures include the first cash transfer from the Bank of England Asset Purchase Facility Fund to Government of £3.8bn, which took place on January 7th of this year, something which has drawn criticism from some corners.

Public sector net debt - excluding interventions in the financial sector - was £1,162.8bn at the end of January 2013, equivalent to 73.8% of gross domestic product (GDP).

The public sector current budget surplus was £14.9bn in January 2013; this is a £5.1bn higher surplus than in January 2012, when there was a surplus of £9.8bn, ONS added.

In 2011/12 the public sector net borrowing was £121.0bn; this is £5.0bn lower than the Office for Budget Responsibility (OBR) forecasted net borrowing for 2011/12 of £126.0bn, ONS added.

Figures in this bulletin also include for the first time the impact on the public sector finances arising from the reclassification of Northern Rock Asset Management (NRAM) and Bradford & Bingley to the central government.

Commenting on the data economists at Barclays Research point out that: "Although borrowing on the month surprised positively there is little evidence of an improving trend. Central government current receipts were £4.5bn higher in January 2013 compared with January 2012, but this falls to £3bn if the asset purchase facility (APF) and special liquidity scheme (SLS) transfers are ignored.

"Central government current expenditure was £2.1bn higher than in January 2012. Thus, the underlying central government current budget has improved by only about £1bn. By our estimation, the government remains broadly on track to meet its borrowing forecast for the current fiscal year."

AB

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