Government borrowing exceeds £14bn in June

”Government

The Office for National Statistics (ONS) has today revealed public sector borrowing totalled £14.5 billion in June.

While the figure was slightly lower than the £14.7 billion seen in June last year, it surprised economists who expected the figure to be around £13.1 billion.

Overall, Government debt stands at £926.9 billion – the equivalent to 63.9% of GDP – the highest figure on record.

The deficit hit 11% of GDP last year but the new coalition Government has made cutting the deficit its top priority and has announced plans to bring this down to 10.1% this year.

However, despite the disappointing figures, public finances have improved recently with tax receipts recovering as the country emerges from its worst recession in decades.

As the figures were released, sterling fell to a session low against the euro and also lost ground against the dollar.

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