Public sector borrowing better than expected
By politics.co.uk staff
Public sector borrowing was lower than expected in April, but experts are warning against any excessive optimism.
Official figures from the Office for National Statistics found public sector borrowing clocking in at £9.955 billion, considerably lower than the forecasts of £11 billion.
Borrowing for 2009/10 was revised down by £7.5 billion, standing at £145 billion – 10.37% of GDP.
But analysts warned that the unexpected figures could be due to one-off factors, such as employers bringing forward payments on incomes over £150,000, which will soon be hit by a new rate of tax.
A spate of higher bonuses may also have played a role.
National Insurance payments – a key debate in the general election campaign – shot up 22.4% on the year. VAT receipts were also up, by 34%.
