UK borrowing falls in May
The Office for National Statistics (ONS) has today revealed UK public sector borrowing fell slightly last month.
According to the ONS, public sector borrowing fell to £15.15 billion last month compared with £16.46 billion in May last year.
The figure was lower than analysts’ expectations of £15.75 billion and was attributed to an increase in taxes – which includes the VAT rise in January.
Meanwhile, public sector net borrowing (which strips out financial intervention such as bank bailouts – and is the Government’s preferred measure) fell to £17.41 billion against £18.48 billion a year earlier.
The latest figures mean Chancellor George Osborne’s five-year deficit reduction plan appears to be on target.
The Office for Budget Responsibility (OBR) is expecting public sector net borrowing will come in at £122 billion for the current tax year – lower than the £143 billion borrowed in the previous tax year.
The independent OBR was set up by the coalition Government to assess the state of public finances.