Government borrowing falls in July
The Office for National Statistics (ONS) has today revealed public sector borrowing totalled £3.8 billion in July.
Not only was the figure was much less than the £5.25 billion expected by analysts, it is also well below the £6.1 billion borrowed in July 2009.
The improved picture was attributed to exceptionally strong growth in receipts usually experienced in July.
Corporation tax was up 37.7%, while VAT receipts brought in an additional 21.2% on the year.
A Treasury spokesperson said: “July is an important month for tax receipts because of quarterly payments of corporation tax, and today’s figures show receipts strengthening in line with the Office for Budget Responsibility’s Budget forecast.”
Meanwhile, in the financial year to date, net borrowing is £44.9 billion, below last year’s £47.5 billion.
The improvement in tax receipts has been primarily due to the narrowing of the deficit.
The deficit hit 11% of GDP last year but the coalition Government has made cutting the deficit its top priority and has announced plans to bring this down to 10.1% this year.