UK borrows less than thought but Hunt pledges budget discipline

William Schomberg - Reuters - 21/07
Britain borrowed less than expected in the first three months of the financial year data showed on Friday, but finance minister Jeremy Hunt ruled out a rush to cut taxes to help the fortunes of his flagging Conservative Party before the next election.
  • UK borrowing comes in lower than expected in June
  • ONS revises down borrowing in first 3 months of tax year
  • Hunt promises to keep a grip on public finances
  • Tax increases help to boost government revenues

LONDON, July 21 (Reuters) - Britain borrowed less than expected in the first three months of the financial year data showed on Friday, but finance minister Jeremy Hunt ruled out a rush to cut taxes to help the fortunes of his flagging Conservative Party before the next election.

Although borrowing remains high after the shocks of the coronavirus pandemic and last year's energy price surge, the budget deficit in June stood at 18.5 billion pounds ($23.8 billion), down by 0.4 billion pounds from June 2022.

A Reuters poll of economists had pointed to higher borrowing of 22 billion pounds last month.

The June deficit took borrowing in the first three months of the 2023/24 financial year to 54.4 billion pounds, 12.2 billion pounds more than in the same period last year but 7.5 billion less than expected by Britain's budget forecasters.

The Office for National Statistics (ONS) revised down its April-May borrowing estimate by 7 billion pounds as tax revenues - which have been increased by hefty tax hikes announced by the government in November last year - came in stronger ...
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