FX.co ★ UK Budget Deficit Exceeds Estimate

The UK's public sector net borrowing saw a decrease in the financial year that ended in March. However, the figure remained significantly higher than the official estimate, according to data from the Office for National Statistics released on Tuesday.

In the financial year that closed in March, preliminary estimates placed borrowing at £120.7 billion. This figure is £7.6 billion lower than the previous year's borrowing levels. However, it surpasses the Office for Budget Responsibility's forecast by £6.6 billion.

As of March's end, the public sector net debt, excluding public sector banks, was approximated at 98.3% of the GDP. This is an increase of 2.6 percentage points compared to the end of March 2023.

Focusing on the month of March in isolation, net borrowing reduced by £4.7 billion year on year, arriving at £11.9 billion. This figure exceeds the projected level of £8.9 billion. Government receipts in March expanded by £6.6 billion, reaching a total of £90.6 billion. In contrast, government expenditure fell by £0.4 billion, resting at £102.5 billion.