Public borrowing below forecasts despite July rise

Government borrowing was lower than expected in July, despite rising from the same point a year earlier.

Borrowing - the difference between spending and tax income - rose to £4.3bn last month, according to the Office for National Statistics (ONS).

That was £3.4bn more than a year earlier and the fifth-highest figure for July since monthly records began in 1993.

However, the figure was below analysts' forecasts of about £5bn.

Borrowing for the financial year to date has now reached £56.6bn, according to the ONS.

That is £13.7bn more than in the same four-month period last year, but lower than the £68bn that had been predicted by the government's independent forecaster, the Office for Budget Responsibility, in March.

Commenting on the latest figures, Chancellor Jeremy Hunt said: "As inflation slows, it's vital that we don't alter our course and continue to act responsibly with the public finances.

"Only by sticking to our plan will we halve inflation, grow the economy and reduce debt."