UK public finances decline more than expected in September

According to the Office for National Statistics, the UK’s headline public borrowing declined from an upwardly revised £11.6bn to £9.4bn in September, compared with analysts’ expectations for a £10.1bn reading.

The report added the drop in public borrowing was driven by record revenues for the month from income, VAT and corporation tax.

Meanwhile, in the first six months of the 2015/16 tax year, public sector net borrowing declined 13.9% year-on-year to £46.3bn.

However, while income, VAT and corporation tax receipts registered their strongest record for the month, central government total expenditure rose to its highest level since records began.

The figures suggest the Chancellor George Osborne faces a race against time to meet his borrowing goal for the year after a disappointing performance in August.

In the wake of the Conservative party’s success in May’s general election, the Chancellor said he aimed to achieve a budget surplus by 2019/20, revealing he aimed to cut the budget deficit this year to £69.5bn from £89.2bn in the year ending in March.