Two by-election defeats have made it a miserable morning for the Tories, even if they did manage to cling on in Uxbridge. But they’ve had better-than-expected news on another front. This morning’s update from the Office for National Statistics (ONS) reveals that public sector net borrowing has come in lower than what was forecast at the March Budget: £18.5 billion in June, compared to the Office for Budget Responsibility’s (OBR) prediction of £21.1 billion.
Borrowing last month was £0.4 billion less than the year before, while interest payments on government debt saw a huge drop: from £20 billion last June down to £12.5 billion this June. Don’t be fooled: these are still some of the highest numbers for June on record (both the third highest borrowing numbers and interest payable numbers, to be exact). But the picture is still looking better than was expected a few months ago, with the government continuing to undershoot borrowing estimates, which came in more than £7 billion below what was expected between April and June this year.
Still, the headline numbers tell a prettier picture this morning than the details.
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