UK government borrowing was lower than expected in May as the reopening of the economy supported government receipts and the state spent less than forecast.
Public sector net borrowing, excluding public sector banks, was £24.3bn, the Office for National Statistics estimated. Borrowing was £19.4bn less than a year earlier and better than the £28.5bn forecast by the Office for Budget Responsibility. Analysts had on average expected borrowing of £25.5bn.
The ONS estimated central government receipts were £56.9bn in May, £7.2bn more than a year earlier as VAT and income tax outstripped forecasts. Central government spent £81.8bn – lower than a year earlier and less than the OBR’s £84.9bn forecast as support for businesses and households eased.
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, said: “Public borrowing is continuing to decline more rapidly than the OBR expected, with the main measure of borrowing in May undershooting its £28.5bn forecast by £4.2bn.”
