The UK public sector borrowed less than expected in the financial year to August 2021, official figures show, although the amount borrowed is the second highest on record for the month, after August 2020.
Data from the Office for National Statistics (ONS) shows the Government borrowed £93.8 billion from the start of the 2021/22 financial year to August, £31.9bn less than the Office for Budget Responsibility (OBR) expected.
According to the OBR, the better-than-expected figures reflect stronger tax receipts owing to a faster economic recovery and lower Government spending than previously thought.
Monthly borrowing remains the second highest on record for August, nevertheless, standing at £20.5bn, down from £5.5bn in August 2020, but £15.3bn more than that of August 2019.
Responding to the ONS public sector finance figures from August 2021, Julian Jessop, economics fellow at free market think tank Institute of Economic Affairs, said:
“The UK Government borrowed slightly more than expected in August, but there were some reassuring points too.
“Public sector net debt of around 97.6% of GDP at the end of August was actually lower than the 98.8% reported at the end of July.”
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