The UK's finances have plunged more than STG1bn further into deficit than the Chancellor of the Exchequer Gordon Brown forecast in his Budget speech. Public sector net borrowing at the end of March hit STG25.2bn for the financial year to date, according to the Office for National Statistics (ONS). That compares with Brown's Budget prediction of STG24bn, and with a surplus of STG0.4bn for 2001/02. The number is also more than STG5bn above forecasts made in the pre-budget report in November, highlighting the speed at which Britain's coffers are being depleted of cash, although STG2bn of that was money set aside to pay for the US-led war on Iraq.
Data from the ONS also showed the budget deficit for the month of March was STG8.1bn, up sharply from the STG3bn deficit in March last year. The public sector net cash requirement, which highlights the Government's cash position rather than its underlying fiscal health, came in at STG11.1bn for March, STG3.3bn higher than in March 2002. ///www.fxcentre.com