19 August 2010
Public sector net borrowing in July fell by £3.3bn compared with the same month last year.
The Office for National Statistics released its Public finances: July 2010 report today. It shows that public sector net borrowing was £3.8bn, compared with £6.1bn in the same month last year. This calculates the difference between public sector net investment and current budget.
According to the ONS, the public sector deficit came down from £47.5bn in 2009 to £44.9bn in the first four months of this year. The Treasury put this down to a pick up in tax receipts but has said that this remains below its pre-recession peak.
The Office for Budget Responsibility also released statistics today. These showed that tax receipts will continue to grow rapidly through measures taken in the Budget. The direct effect of the Budget measures will add another £8.5bn to the tax receipts in 2013/14, but this will be slightly offset by changes to the economic forecast.
The figures also show that unemployment is likely to peak in the final quarter of 2010 at 8.1%, and will begin to decrease from the final quarter of 2011.
