George Osborne on track over borrowing

Chancellor George Osborne has remained on track to meet his annual borrowing target, despite figures today showing a bigger than expected rise last month.









Public sector net borrowing, excluding financial interventions such as bank bailouts, was £14 billion in June, compared with £13.6 billion the same month the previous year, the Office for National Statistics revealed.



This was higher than economists' expectations for a rise of £12.5 billion. The larger than expected figure was due to a slight drop in income taxes, largely as a result of tax rebates.



However, there was some good news for the Chancellor as in the financial year to date the Government has borrowed slightly less than the previous year.



The Government has a target of reducing borrowing to £122 billion in the current financial year from £143.2 billion the previous year.



It had been thought that the Government had borrowed more this year than last year, but figures for April and May were revised downwards by £1.4 billion by the ONS today.











Interest payments on the Government's debt rose by 6% to £4.1 billion and helped push overall expenditure up by 4.9% to £52 billion, despite the austerity measures which are increasingly kicking in.

The Government borrowed £39.2 billion in the first three months of its financial year, down on £39.5 billion in the same period of the previous year.



The latest borrowing figures have pushed the UK's state debt up to £944.3 billion, equivalent to 61.9% of GDP.



James Knightley, an economist at ING, said the marginal improvement so far this year reflects the fact that while tax revenues are up, "Government spending is not contracting in a significant way".



He added: "This is in no small part due to a rise in interest expenses given the UK's deepening debt position - 20% of UK debt is inflation linked and rising inflation has been pushing up the servicing costs on this debt."

PROMOTED VIDEO
Have you tried new the Independent Digital Edition apps?
News
ebooksAn unforgettable anthology of contemporary reportage
Arts and Entertainment
tv
News
Katie Hopkins appearing on 'This Morning' after she purposefully put on 4 stone.
peopleKatie Hopkins breaks down in tears over weight gain challenge
Life and Style
fashionModel of the moment shoots for first time with catwalk veteran
Life and Style
fashionAngelina Jolie's wedding dressed revealed
News
i100
Sport
Alexis Sanchez, Radamel Falcao, Diego Costa and Mario Balotelli
footballRadamel Falcao and Diego Costa head record £835m influx
News
i100
Arts and Entertainment
Madame Vastra and Jenny Flint kiss in Doctor Who episode 'Deep Breath'
tv
Arts and Entertainment
Olivia Colman topped the list of the 30 most influential females in broadcasting
tv
Life and Style
techIf those brochure kitchens look a little too perfect to be true, well, that’s probably because they are
Arts and Entertainment
Danish director Lars von Trier
tvEnglish-language series with 'huge' international cast set for 2016
Life and Style
tech
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs General

Secondary supply teachers required in Wisbech

£21000 - £35000 per annum: Randstad Education Cambridge: Secondary teachers ne...

PPA Cover Teachers Required in Doncaster

Negotiable: Randstad Education Sheffield: Primary PPA Teachers required for wo...

Maths teachers needed for supply work in Ipswich

£21000 - £35000 per annum: Randstad Education Cambridge: Maths teachers requir...

Executive Assistant/Events Coordinator - Old Street, London

£35000 - £38000 per annum + benefits: Ashdown Group: Executive Assistant/Event...

Day In a Page

'I’ll tell you what I would not serve - lamb and potatoes': US ambassador hits out at stodgy British food served at diplomatic dinners

'I’ll tell you what I would not serve - lamb and potatoes'

US ambassador hits out at stodgy British food
Radio Times female powerlist: A 'revolution' in TV gender roles

A 'revolution' in TV gender roles

Inside the Radio Times female powerlist
Endgame: James Frey's literary treasure hunt

James Frey's literary treasure hunt

Riddling trilogy could net you $3m
Fitbit: Because the tingle feels so good

Fitbit: Because the tingle feels so good

What David Sedaris learnt about the world from his fitness tracker
Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Saudis risk new Muslim division with proposal to move Mohamed’s tomb

Second-holiest site in Islam attracts millions of pilgrims each year
Alexander Fury: The designer names to look for at fashion week this season

The big names to look for this fashion week

This week, designers begin to show their spring 2015 collections in New York
Will Self: 'I like Orwell's writing as much as the next talented mediocrity'

'I like Orwell's writing as much as the next talented mediocrity'

Will Self takes aim at Orwell's rules for writing plain English
Meet Afghanistan's middle-class paint-ballers

Meet Afghanistan's middle-class paint-ballers

Toy guns proving a popular diversion in a country flooded with the real thing
Al Pacino wows Venice

Al Pacino wows Venice

Ham among the brilliance as actor premieres two films at festival
Neil Lawson Baker interview: ‘I’ve gained so much from art. It’s only right to give something back’.

Neil Lawson Baker interview

‘I’ve gained so much from art. It’s only right to give something back’.
The other Mugabe who is lining up for the Zimbabwean presidency

The other Mugabe who is lining up for the Zimbabwean presidency

Wife of President Robert Mugabe appears to have her sights set on succeeding her husband
The model of a gadget launch: Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed

The model for a gadget launch

Cultivate an atmosphere of mystery and excitement to sell stuff people didn't realise they needed
Alice Roberts: She's done pretty well, for a boffin without a beard

She's done pretty well, for a boffin without a beard

Alice Roberts talks about her new book on evolution - and why her early TV work drew flak from (mostly male) colleagues
Get well soon, Joan Rivers - an inspiration, whether she likes it or not

Get well soon, Joan Rivers

She is awful. But she's also wonderful, not in spite of but because of the fact she's forever saying appalling things, argues Ellen E Jones
Doctor Who Into the Dalek review: A classic sci-fi adventure with all the spectacle of a blockbuster

A fresh take on an old foe

Doctor Who Into the Dalek more than compensated for last week's nonsensical offering