UK public finances updates
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The UK’s public finances performed better last month than official forecasts expected, underpinned by a strong economic recovery from the coronavirus crisis that boosted tax revenues.
Public sector net borrowing in July was £10.4bn, roughly half the level in the same month a year ago. The figure was the second-highest on record, however, highlighting the continued effects of the pandemic.
Borrowing in the 2021-22 financial year was significantly less than the Office for Budget Responsibility, the government’s budgetary watchdog, expected in the March Budget. It estimated that the cumulative borrowing figure in the first four months of the financial year would be £104bn, but the actual figure stood at £78bn.
Rishi Sunak on Friday sought to highlight the still fragile state of the public finances at a time when the Treasury is seeking to rein in public spending bids from government departments.
The chancellor welcomed signs of recovery, but said “the…
