Public Borrowing Higher Than Expected

The Office for National Statistics have revealed that the UK government borrowed more than expected in May, as tax receipts fell and spending rose.

Many analysts had expected May’s figure to be around the £14.8 billion mark; however, the latest figures from the Office for National Statistics have shown that public borrowing, excluding financial interventions such as bank bailouts, rose to £17.9 billion, compared with £15.2 billion the previous year.

In addition to the public borrowing hitting the £17.9 billion mark, Britain’s total public sector net debt, excluding financial sector interventions, rose to £1.013 trillion according to the Office for National Statistics; which is the equivalent to sixty-five percent of GDP – and a record for the month of May.

Following the release of the latest figures, it is feared that the weak figures could add to concerns over the health of the economy.

However, a spokesperson for the Treasury has said: “It is too early in the financial year to draw conclusions about the year as a whole, especially as today’s public finances data include a number of one-off factors and temporary distortions.”