Public sector borrowing falls

Public sector borrowing was £126bn in the financial year to March, including £18.2bn last month, official figures said. The figures show a fall of £11bn over the last financial year, despite a surprise rise in March.

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Economist: Figures suggest UK's fiscal position is continuing to worsen

Public sector net borrowing, excluding financial interventions such as bank bail-outs, was £18.2 billion in March Credit: Reuters

Samuel Tombs, an economist at Capital Economics, said: "March's public finance figures suggest that the trend in the UK's fiscal position is continuing to worsen.

"Weaker-than-expected growth in tax receipts, reflecting the slow pace of economic recovery, has been offset by lower-than-anticipated growth in current expenditure for the year as a whole.

"But with the economic recovery continuing to stutter, we think it will become increasingly difficult for the Government to meet its ambitious deficit reduction plans in the coming fiscal year."

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Government borrowing falls by £11 billion

Government borrowing reduced by nearly £11 billion over the last financial year, despite a surprise rise in the figure for March.

Public sector net borrowing, excluding financial interventions such as bank bail-outs, was £18.2 billion in March, up slightly on a year ago and against City hopes of £16 billion, the Office for National Statistics (ONS) said.

But the Government still met the Budget day forecast, announced by its tax and spending watchdog, for borrowing of £126 billion in the year to the end of March.

This was down from £136.8 billion the previous year, after revisions in previous months.

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