Conservatives rejoice, your insistence that Labour is the party of borrowing has been proven correct by the Office of National Statistics.
Borrowing for the financial year so far has reached £16.8bn, £5.4bn less than in the same period in 2017, the Office for National Statistics said.
June’s borrowing figure came up to £5.5bn which is down from £6.2bn from a year ago. Analysts say borrowing falling faster than predicted may be due to a less austere budget.
“Borrowing is at the lowest level for over a decade, which shows our balanced approach is working,” the Treasury said in a statement.
In the coming financial year, the Office for Budget Responsibility (OBR), which produces the official government forecasts, expects the public sector to borrow £37.1bn.
With context that comes up to only a quarter of what it borrowed during the 2008-2009 financial crisis.
Conservatives for the win?
Samuel Tombs, chief UK economist at Pantheon Macroeconomics, has said since borrowing if falling faster than OBR predicted, Phillip Hammond can change course in the Autumn budget.
He told the BBC: “Borrowing still should come in comfortably below the OBR’s forecast this year; we look for borrowing of about £33bn, equal to 1.6% of GDP.
“Since the chancellor’s target merely is to reduce cyclically-adjusted borrowing to below 2% of GDP by 2020-21, he has scope to scrap the remaining austerity measures planned for the next two years.
“Given that the Conservatives now lag Labour in the opinion polls and Brexit must be seen to be a success, we see no reason why the chancellor wouldn’t opt to soften his plans in the Budget later this year.”
The EY Item Club agreed, saying the chancellor “may have more room for manoeuvre in November’s Budget as he looks to find the extra funding needed for the increased spending promised for the NHS”.
Borrowing falling is great but what matters more is the state of NHS, it has taken care of us, now we have to return the favour.