Public sector net borrowing falls to lowest rate for 11 years

23 May 18

Public sector net borrowing has fallen to its lowest level since 2007, according to the Office for National Statistics.

From April 2017 to March 2018 public sector net borrowing at £40.5bn was £5.7bn less than in the previous financial year, the official figures released yesterday showed. It was also £4.7bn less than official Office for Budget Responsibility expectations.

The OBR has forecast the public sector will borrow £37.1bn between April 2018 to March 2019 - roughly one quarter of what it borrowed in the financial year ending March 2010, at the peak of the financial crisis.

ONS figures released today show the rate of inflation – Consumer Prices Index 12-month rate – was down from 2.5% in March this year to 2.4% in April 2018.

Mel Stride, financial secretary to the Treasury, said: “We must continue to ensure people’s pay outstrips inflation and build an economy that truly works for everyone.”

A Treasury spokesperson added: “Borrowing is at the lowest level for a decade, which shows our balanced approach is working.”

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