Good news on public borrowing, not so good on the deficit

In spite of gloomy remarks by the prime minister during his walkabout yesterday about the deficit reduction not going as well as anticipated, government borrowing in October was less than the chancellor's target. This results from slightly higher than expected tax revenues. However, these may not last if the gloomier predictions of the country's economic growth come true. We should glean more from the chancellor's statement next week.