UK public finances see first July surplus since 2002 – business live Read morePublic sector net borrowing last month, excluding the nationalised banks, was in surplus by £184m, the first surplus in that month since 2002, the Office for National Statistics (ONS) said on Tuesday. However, Britain is still in the red for the current financial year, as public sector net borrowing excluding state-owned banks increased by £1.9bn to £22.8bn in the four months to July, compared with a year ago. The Office for Budget Responsibility, the Treasury’s independent forecaster, expects £58.3bn of public sector borrowing during the current financial year, an increase of £13.2bn on the year ending March 2017. The chancellor faces increasing pressure to lift the cap on public sector pay, though he may have limited room for manoeuvre if he sticks rigidly to the government’s deficit reduction plan. A spokesperson for the Treasury said: “We are making good progress in strengthening our public finances and living within our means.

Source: The Guardian August 22, 2017 09:50 UTC