KPMG UK senior economist Dennis Tatakov said government borrowing continues to
be off-track. Public sector net borrowing was £1.8bn in July, versus £1.1bn a
year earlier. Since the fiscal year began in April the shortfall between
forecast and actual borrowing has remained around £2.3bn. Stronger-than-usual
July PAYE receipts were insufficient to realign borrowing, and pledged
cost-of-living support could keep near-term borrowing elevated. Market appetite
for additional debt is limited.
