Public sector borrowing falls

11:04 am, Fri 19 Jul 2013

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

11:00 am, Fri 19 Jul 2013

Treasury: Economy is 'moving from rescue to recovery'

The Government is taking tough decisions to deal with the deficit: today's data shows that borrowing fell last year.

And while we can and will take nothing for granted, the economy is moving from rescue to recovery: the economy is growing; the deficit and unemployment are falling.

– Treasury spokesman

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?

9:37 am, Fri 19 Jul 2013

Public sector borrowing falls by £3.4bn

Public sector net borrowing excluding financial interventions fell by £3.4 billion to £8.5 billion in June, the Office for National Statistics said.

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