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

Public sector net borrowing
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."

Advertisement

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.