UK public sector net borrowing falls in April on strong tax receipts
The UK budget deficit narrowed in April from last year, according to data published by the Office for National Statistics on Friday.
Public sector net borrowing excluding state-controlled banks fell 27% from a year earlier to £6.8bn, compared with economists’ expectations for a shortfall of £8.1b, thanks to stronger tax receipts.
Total public sector net borrowing narrowed to £6bn in April from £8.7bn in April last year.
"Very welcome news for Chancellor George Osborne as the public finances notched up appreciable year-on-year improvement in April as the new fiscal year got under way," said Howard Archer, chief European & UK economist at IHS Global Insight.
"The public finances benefited in April as income tax receipts continued to strengthen after improving through the first three months of the year; this followed extended under-performance. The Office for National Statistics reported that income-tax related payments rose by 3.7% year-on-year in April," added Archer.