Borrowing by sector

4A.4 Privatisation proceeds account for part of this difference. Proceeds in April-October totalled £3.9 billion and very little in the way of privatisation proceeds are expected in the rest of 1996-97. This contrasts with 1995-96 when all the £2.4 billion proceeds for the year were received in the November to March period. Tax receipts in January - the usual peak month for receipts - are likely to be relatively weak as compared with the previous high months of July and October. Corporation tax receipts from industrial and commercial companies, who largely pay tax in January, are not expected to show as large a rise as did tax receipts from financial companies, who pay in October. And Schedule D income tax payments in January will be at lower tax rates (the 1996-97 rates) than the payments made last July.

4A.8 The table makes the assumption that the Reserve for 1997-98 is spent entirely on transactions that fall above the financial deficit line, although in practice allocations from the Reserve can also affect financial transactions. The Reserve for 1997-98 has been further apportioned between current and capital expenditure, on the basis of the experience of past outturns. It has also been assumed that all of the Reserve will be spent by central government; in practice allocations from the Reserve can be made to local authorities and public corporations spending as well.

4A.9 Tables 4A.4 and 4A.5 summarise the information on local authorities and public corporations transactions in Table 4A.6 and also provide outturn figures for 1995-96.