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UK government borrowing falls in May UK government borrowing falls in May
(35 minutes later)
A rise in income tax receipts helped to cut UK government borrowing in May, official figures have shown.A rise in income tax receipts helped to cut UK government borrowing in May, official figures have shown.
UK government borrowing fell to £10.129bn in May, the Office for National Statistics (ONS) said, down from £12.35bn a year earlier. UK government borrowing fell to £10.13bn in May, the Office for National Statistics (ONS) said, down from £12.35bn a year earlier.
It was the lowest borrowing figure in May for eight years, while income tax receipts recorded their highest level for May in four years. It was the lowest borrowing figure in May for eight years.
Income tax receipts rose by 5.3% from a year earlier to £10.8bn. Public sector net debt excluding public sector banks now stands at £1.5 trillion, the ONS said, which is 80.8% of gross domestic product.
Public sector net debt excluding public sector banks now stands at £1,500.2bn, the ONS said, which is 80.8% of gross domestic product. "While the deficit in the financial year ending 2015 has fallen by more than a third since its peak in the financial year ending 2010, public sector net debt has maintained a gradual upward trend," the ONS said in a statement.
Income tax receipts recorded their highest level for May in four years, rising by 5.3% from a year earlier to £10.8bn.
Analysts said the drop in government borrowing during May was good news for Chancellor George Osborne at the start of a new fiscal year.
"The chancellor is currently on track to significantly undershoot his fiscal targets for 2015-16", said Howard Archer, chief UK economist at IHG Global Insight.
But, he added: "Major questions remain ahead of the extra Budget on 8 July over the new Conservative government's ability to meet its ambitious fiscal targets over the longer term.
"In particular, the government is yet to clarify exactly where the planned cuts to departmental spending (£30bn) and welfare spending (£12bn) will be made."
Last week, the chancellor said he would attempt to bind future governments to maintaining a budget surplus when the economy is growing.