"The longer-term prospects are looking much more disappointing than the Office for Budget Responsibility and the government were hoping when they first set these targets out back in March"
- Chris Williamson, chief economist at Markit
The British government borrowed much more than initially expected in October, adding to concerns that the country will not manage to meet its short-run deficit reduction goals and causing new challenges to the finance Minister George Osborne. Public sector net borrowing excluding the effects of banking bailout soared to £8.6 billion last month, up from £5.9 billion in the same month a year earlier, the Office for National Statistics said Wednesday.
"The longer-term prospects are looking much more disappointing than the Office for Budget Responsibility and the government were hoping when they first set these targets out back in March," Chris Williamson, chief economist at Markit said. "So it's moving totally in the wrong direction."
A Treasury spokesman said: "The economy is healing, but it still faces many challenges. These numbers illustrate that, but also show the government's plans to bring spending under control are on track for the year."
The FTSE 100 Index rose 0.07 per cent to 5,752.03. The broader FTSE All-Share Index edged higher 0.02 per cent to 3,005.02.
© Dukascopy Bank SA