UK government borrowing falls in June
UK government borrowing in June was £16bn, lower than expected and down from the previous year. Despite this, analysts warn that public finances remain fragile as the new government faces difficult fiscal choices.
Why it matters
The data provides insight into the economic challenges facing the new UK administration under Prime Minister Andy Burnham.
Image source, Getty Images Image caption, The UK's new chancellor John Healey
The government borrowed slightly less than expected in June, according to figures published as new Prime Minister Andy Burnham began setting out measures to cut living costs for households.
Borrowing - the difference between spending and income from taxes - was £16bn, about £7.9bn lower than a year earlier, although analysts said challenges remained over the UK's public finances.
Other data showed the unemployment rate was unchanged, with the Office for National Statistics (ONS) saying the labour market was "relatively steady".
However, while the borrowing figure was less than forecast, the ONS said total debt was high by historical standards and close to the annual value of the UK economy.
Borrowing for June was slightly below the £16.3bn that had been predicted by the government's official forecaster, the Office for Budget Responsibility (OBR).
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