UK deficit falls to lowest level since start of financial crisis

UK deficit falls to lowest level since start of financial crisis

Government borrowing totalled £107.7bn in the fiscal year to end-March, just below the target outlined in last month’s budget.

George Osborne just met his full-year borrowing target in 2013-14, with the UK deficit falling to the lowest level since the beginning of the financial crisis as economic recovery boosted tax receipts.

Government borrowing fell to £107.7bn in the fiscal year to the end of March 2014 from £115.1bn a year earlier, scraping in just below the £107.8bn target outlined by the Treasury’s independent forecaster, the Office for Budget Responsibility (OBR), in last month’s budget.

The chancellor was able to meet his target thanks to an unexpectedly sharp fall in borrowing in March to £6.7bn, from £11.4bn a year earlier.

City economists had expected Osborne to miss it, forecasting a full-year deficit of £110bn.

Full-year borrowing as a percentage of GDP fell from 7.4% in 2012-13 to 6.6%, which was the lowest since 2007-08 according to the figures from the Office for National Statistics.