UK public sector net borrowing lowest in 10 years
Data released by the Office for National Statistics on Tuesday revealed that the government borrowed the lowest amount in 10 years in February.
UK public sector net borrowing decreased by £2.8bn in February to £1.8bn, marking the lowest February borrowing since 2007 and below forecasts for £3.2bn.
Borrowing was down £19.9bn to £47.8bn in the current financial year-to-date, compared with the same period in the previous year. This was the lowest YTD borrowing since the financial ending February 2008.
Public sector net debt excluding state-owned banks came in at 85.4% of gross domestic product, up £111.1bn or 2.3 percentage points as a ratio of GDP since February 2016.
Suren Thiru, head of economics at the British Chambers of Commerce, said: "The latest public finances data show that the government remains on course to meet the Office for Budget Responsibilities forecast for 2016/17 made in the Spring Budget, with public borrowing declining again in February.
"However, if UK economic growth becomes more subdued as we expect, the UK is likely to face an uphill struggle to achieve meaningful deficit reduction in the coming years, as the government’s ability to generate tax receipts comes under greater pressure.”