Mandelson expects no more borrowing surprises

 

Business Secretary Peter Mandelson said on Monday he expected no more surprises this year on public borrowing and that the UK borrowing requirement for the year as a whole would come within the forecast level.

Last week, Britain posted its first ever budget deficit for the month of January this year, a worse than expected result for a Labour government struggling to pacify debt-wary markets ahead of an election it is tipped to lose.

"Our borrowing requirement will come within the forecast level ... for the year as a whole" Mandelson told a news conference at a Global Investment Conference in London.

"In January, the Treasury's receipts took a bit of a hit because they corresponded to that period in 2008/2009 which was the sharpest point in the recession ... I don't think there will be further surprises on this during the course of the year. We just have to maintain our present direction, our present mix of policies in order to lock in the recovery" he said.