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| Government borrowing down in June | Government borrowing down in June |
| (35 minutes later) | |
| Government borrowing fell sharply in June, but not as much as expected. | Government borrowing fell sharply in June, but not as much as expected. |
| Public sector net borrowing, excluding the cost of bank rescues and other financial interventions, was £8.5bn. | Public sector net borrowing, excluding the cost of bank rescues and other financial interventions, was £8.5bn. |
| That was down 29% from £11.9bn in June 2012, according to the Office for National Statistics. | That was down 29% from £11.9bn in June 2012, according to the Office for National Statistics. |
| Borrowing for May was also revised up, due to a more cautious estimate of revenues from a tax agreement with Switzerland, while borrowing for the previous fiscal year was revised down. | Borrowing for May was also revised up, due to a more cautious estimate of revenues from a tax agreement with Switzerland, while borrowing for the previous fiscal year was revised down. |
| The ONS shaved the total borrowing figure for 2012-13 down to £116.5bn, meaning that total borrowing last year - excluding the flattering but one-off effect of the Royal Mail pension transfer - did actually fall, by £2.1bn, from the year before according to the latest estimate. | |
| Previous revisions to the data released in May had indicated that borrowing in 2012-13 had risen slightly from the year before. | |
| QE deal | |
| Borrowing in June was somewhat higher than analysts' expectations for a figure of about £8bn. Nonetheless, three months into the fiscal year, the government remains on course to reduce the budget deficit in line with its forecasts. | |
| Total accumulated government debt reached £1.2tn in June, or 74.9% of the UK's annual economic output. | |
| The government's finances continue to be flattered by a deal reached with the Bank of England last year regarding government debts bought by the Bank as part of its quantitative easing stimulus programme. | |
| The deal does nothing to change the flow of money within the public sector, but changes the way in which the Treasury is able to account for its borrowing costs. | |
| It allows the government to report its borrowing cost at the historically low 0.5% overnight interest rate currently by the Bank, instead of the much higher interest rate it pays on the debts that the Bank owns. | |
| Excluding this effect, June borrowing was £12.4bn - half a billion higher than the figure a year ago. |