Britain’s budget deficit is on course to be much higher this year than the government hoped, despite an unexpectedly large fall in public borrowing last month, official figures show. The Office for National Statistics said public borrowing in June stood at £7.8bn, compared with £10bn in the same month last year and the £9.5bn predicted by the City. The ONS said public sector net borrowing – the government’s preferred measure of the size of the budget deficit – stood at £25.6bn in April to June 2016, compared to £27.9bn in the same months in 2015. Ahead of the referendum, monthly borrowing continued to fall, with the deficit in June the lowest it has been since 2007. Assuming a similar performance for the year as a whole, the deficit would total almost £70bn, rather than the £55bn forecast by the Office for Budget Responsibility.

Source: The Guardian July 21, 2016 11:48 UTC