"Spending in April was 5 per cent higher than a year ago at £54.1 billion. This was mainly caused by a 26 per cent rise in interest payments to £1 billion as the Government services its growing debts and interest rates rise along with inflation.
The Government's deficit reduction plans were dealt a blow today after official figures revealed that last month's borrowing figures were the highest ever recorded for the month of April.
Public borrowing, excluding financial interventions such as bank bail-outs, hit £10 billion, compared with £7.3 billion the previous year, said the Office for National Statistics (ONS)."
I don't understand. Gilt rates don't seem to have risen - where's this extra 5% spending coming from ? And anyway, 'Daily Mail Reporter' can't do maths - if interest payments rose 26% to £1bn that means they rose by £206 million. If spending rose by 5% to £54.1bn then it was £51.5bn a year ago - a rise of £2.6bn, of which less than 10% is attributable to increased interest payments.
So where's the extra spending going ?
Daily Mail really are no good. Page 4 of this pdf shows :
Central government account
April Financial year
2011 2010 2010 /11
Interest 4.6 3.6 43.2
Net social benefits 14.7 14.0 173.2
Other curr expndture 34.8 34.0 387.1
Total curr expndture 54.1 51.5 603.5
So interest is £1bn more, social benefits £0.7bn more, other £0.8bn more, total £2.5bn extra of which 40% is down to increased interest - presumably not because of increased rates but because of increased gilt issuance.
You expect most journalists, as Arts grads, to be functionally innumerate. But they could have found someone who could add up for this story.
(sorry the formatting's no good. And H/T Brian for the pdf)