The UK government borrowed about £13bn less than what was expected last year, as per official figures, despite the budget deficit reaching the fourth-highest level on records dating back to 1946.
According to the Office for National Statistics, the difference between the state's revenues and expenditures was anticipated to be £139 billion in the year ending in March, more than £18 billion from the previous year.
The amount, meanwhile, is less than the £152 billion prediction given by the Office for Budget Responsibility (OBR) alongside the chancellor's budget last month. With a notable spending undershoot, both spending and receipts came in lower than expected.
Analysts said the better than expected figures could provide Jeremy Hunt with wriggle room to cut taxes or increase spending before the next election. “We wouldn’t be at all surprised to see a further fiscal loosening in the autumn statement,” said Ruth Gregory, the deputy chief UK economist at the consultancy Capital Economics.
However, the chancellor said “we cannot borrow forever”, adding that the government had a clear plan to get debt falling.