UK's deficit falls while gross debt increases, says ONS

Britain’s deficit fell for the 2016 financial year fell while gross debt increased for the 14th consecutive year, according to the Office of National Statistics.

In data sent to the European Commission, the ONS reported that UK government deficit, or net borrowing, was £76.6bn in the financial year ending March, which was 4.1% of gross domestic product, a decrease of £17.8bn compared with the previous year, when it was 5.1%.

This is the lowest value as a percentage of GDP since 2008 when it was 3%, but the deficit is above the Maastricht reference value of 3%.

Gross debt was £1,651.9bn or 87.8% of GDP, a of £47.9bn rise, from last year when it was 87.4% and is the 14th consecutive yearly increase.

The general government gross debt first exceeded the 60% Maastricht reference value in 2010 when it was 70.3% of GDP.

According to deficit and debt figures published in July, seven EU member states, including Britain, had a deficit exceeding the 3% of GDP reference value in 2015.

While 17 member states, including Britain, had gross debts exceeding the 60% of GDP reference value at the end of 2015.