Government borrowing almost hits all-time record high

Government borrowing last year was higher than at almost any point since records began, according to new figures.

But the Office of National Statistics (ONS) figures also show the amount of tax money it collected rose.

Public sector borrowing reached £151.8bn in the year to March – the third highest since 1947 – but less than half the £317.6bn borrowed in the previous 12 months, although higher than the £128bn forecast by the Office for Budget Responsibility.

The tax authorities collected £94.3bn more than they had in the previous year – reaching £619.9bn.

Michal Stelmach, senior economist at KPMG UK, said: "Having peaked at nearly 15% of GDP in the first year of the pandemic, borrowing is now estimated to have more than halved in the 2021-22 financial year.

"This is quite remarkable considering it took five years following the global financial crisis for that to happen."

A lot of the drop is because the Government spent less over the last year – down by £50.3bn to £893.3bn – because of reduced spending on furlough scheme and NHS

Test & Trace.

Chancellor Rishi Sunak said: "The economy is recovering and our public finances are improving, allowing us to invest in vital public services, help the hardest hit with a £22billion package of support and get people into work.

"Despite global economic headwinds, we continue to meet our fiscal rules, showing our commitment to keeping the public finances sustainable while supporting the UK's long-term growth and addressing the immediate pressures facing people with their cost of living."