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| Version 0 | Version 1 |
|---|---|
| Fall in public sector borrowing | Fall in public sector borrowing |
| (about 1 hour later) | |
| The decline in borrowing will be good news for the Treasury | The decline in borrowing will be good news for the Treasury |
| Public sector borrowing declined in May, official figures have shown. | Public sector borrowing declined in May, official figures have shown. |
| Net borrowing last month totalled £16bn, down 8% from £17.4bn in May 2009, according to figures from the Office for National Statistics (ONS). | |
| The ONS said total government debt was £903bn, equivalent to 62.2% of the UK's annual economic output. | The ONS said total government debt was £903bn, equivalent to 62.2% of the UK's annual economic output. |
| The coalition government has pledged to reduce how much it has to borrow to fund public services, and is due to announce a series of spending cuts. | The coalition government has pledged to reduce how much it has to borrow to fund public services, and is due to announce a series of spending cuts. |
| 'Unsustainably high' | 'Unsustainably high' |
| May's borrowing figure was less than analysts' expectations, but commentators said it remained far too high. | May's borrowing figure was less than analysts' expectations, but commentators said it remained far too high. |
| "Does this detract from the case for a big fiscal tightening next week? No." said Philip Shaw, chief economist at Investec. | "Does this detract from the case for a big fiscal tightening next week? No." said Philip Shaw, chief economist at Investec. |
| "UK borrowing remains unsustainably high and fully justifies a big retrenchment in government spending." | "UK borrowing remains unsustainably high and fully justifies a big retrenchment in government spending." |
| Howard Archer, chief UK and European economist at IHS Global Insight, said the latest borrowing figures would give Chancellor George Osborne a "mini boost". | Howard Archer, chief UK and European economist at IHS Global Insight, said the latest borrowing figures would give Chancellor George Osborne a "mini boost". |
| He said that tax revenues were growing as the UK economy continued to recover. | He said that tax revenues were growing as the UK economy continued to recover. |
| "Nevertheless, the public finances are still dire so May's improved data will not deflect Mr Osborne from pressing ahead with his plans to step up the pace of fiscal consolidation in Tuesday's emergency Budget," added Mr Archer. | "Nevertheless, the public finances are still dire so May's improved data will not deflect Mr Osborne from pressing ahead with his plans to step up the pace of fiscal consolidation in Tuesday's emergency Budget," added Mr Archer. |