Pre-Budget borrowing boost for Chancellor

Philip hammond has been handed a pre-Budget boost after Government borrowing fell to its lowest level for a decade.

Borrowing dropped by £700m to £5.9bn last month – a much better improvement than expected, making it the best September since 2007.

the deficit so far this year is £32.5bn, down £2.5bn on the same period for 2016. it suggests that the chancellor will borrow at least £10bn less this year than the £58.3bn being predicted by the office for Budget Responsibility.

But there are concerns that downgrades to economic growth forecasts by the office for Budget Responsibility will leave hammond with little room for giveaways in the Budget next month as he struggles to balance the books.

Laith Khalaf, an analyst at investment firm hargreaves Lansdown, said: ‘Given record low unemployment and surprisingly robust retail sales, it’s not hard to see why the treasury is making inroads on bringing its borrowing back in line. Despite the improving fiscal outlook, we can’t expect too many giveaways in the forthcoming Budget. While the deficit is falling, the Government still owes an eye-watering amount of money.’

treasury coffers were boosted by a jump in tax receipts and National insurance contributions. it suggests the economy remains robust despite Remainers’ warnings of a Brexit hit.