Public sector borrowing rose in the first eight of 2019-20 compared to a year earlier, albeit at a slower pace than the OBR had expected. A shift in the political climate against fiscal austerity and the new government's pledges around higher public expenditure and tax cuts suggests that the direction of borrowing will continue to be up. The fiscal deficit in the period April-November 2019 was £5 1bn or 11.3% higher than the same period in 2018. Although tax receipts grew 2.6% over the same timeframe, that rise was outstripped by a 3.5% increase in central government spending, reflecting in part a more generous NHS pay settlement and higher public sector employer pension contributions.
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