Today’s numbers from the Office of National Statistics show that in the current financial year-to-date, UK borrowing was £16.1bn, £100m less compared with the same period last year and the lowest year-to-date net borrowing since 2008.
However, public sector net debt (excluding public sector banks) hit £1,737.3bn at the end of May, equivalent to 86.5% of GDP, an increase of £121.6bn or 2.9 % as a ratio of GDP on May 2016.
The public finances have been bolstered by greater government income, today’s report states. “In the current financial year-to-date, central government received £110.2bn in income; including £79.1bn in taxes. This was around 5% more than in the same period in the previous financial year,” it said.
Yesterday chancellor Philip Hammond addressed business leaders in his Mansion House speech and told them that the government was committed to balancing the budget but admitted it would take longer than previously thought.
Today’s ONS figures also show public sector net borrowing (excluding public sector banks) decreased by £25.6bn to £46.6bn in the financial year ending March 2017, compared with the previous financial year – this is the lowest net borrowing since the financial year ending March 2008.
The Office for Budget Responsibility has forecast that public sector net borrowing (excluding banks) will be £58.3bn over the current financial year.
