Government borrowing falls in May as economy rebounds
The Office for National Statistics said on Tuesday that public sector net borrowing, excluding public sector banks, was estimated at £24.3bn in May, £19.4bn lower than the same period last year, and an improvement on the £28.5bn forecast by the Office for Budget Responsibility. However, it was still the second highest borrowing figure for May since monthly records began in 1993. Contributing factors were a reduction in Government spending, which dropped 12% to £81.8bn in May, and higher tax revenues from a rebounding economy. Overall, public sector net debt has risen to around 99.2% of GDP in May, the highest since March 1962.