Public sector net borrowing, excluding financial interventions, fell by £1.3 billion to £13.2 billion in August from the same month a year earlier, the Office for National Statistics said.
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The Islamic centre where the Manchester suicide bomber is thought to have prayed says the attack "has no place in Islam or any religion".
German chancellor Angela Merkel and Indian prime minister Narendra Modi among those to praise "great spirit" of Manchester people.
The bomber's identity has been confirmed by Greater Manchester Police.