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Public sector borrowing falls

Public sector net borrowing fell by £3.4 billion to £8.5 billion in June, the Office for National Statistics said. The figure takes account of a £3.9 billion transfer of QE cash from the Bank of England's asset-buying drive.

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Labour: Borrowing figures are 'disappointing'

These disappointing figures show that our stalled economy has led to deficit reduction grinding to a halt. Underlying borrowing rose last month and it was exactly the same in the first three months of this year as it was in the same period last year.

George Osborne is failing to get the deficit down because he has failed to boost living standards and economic growth. He’s borrowing billions more than planned simply to pay for the costs of his economic failure. And his promise to balance the books by 2015 is now in tatters.

– Chris Leslie, Shadow Financial Secretary to the Treasury

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Government borrowing rises by £500m

Chancellor George Osborne. Credit: PA Wire

The Chancellor debt-busting plans were dealt a blow when figures showed underlying Government borrowing rose around £500 million in June.

Public sector net borrowing, excluding distortions such as bank bailouts and quantitative easing (QE) - the pumping of new money into the economy by the central bank - increased in June to £12.4 billion from £11.9 billion a year earlier, the Office for National Statistics (ONS) said.

However, including a £3.9 billion transfer of QE cash from the Bank of England's asset-buying drive, June's deficit fell by £3.4 billion year-on-year to £8.5 billion.

Read: What is quantitative easing?

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