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UK public finances improve in August

Staff Writer |
UK public sector net borrowing fell in August, but is unlikely to meet government targets for debt reduction set in March's budget.

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Excluding public sector banks, PSNB of £10.5bn in August was down £0.9bn on the £11.1bn recorded a year ago, the Office for National Statistics said, versus consensus forecasts of below £10.2bn.

Total PSNB of £10.1bn was smaller than a forecast £10.3m.

For the fiscal year to date, net borrowing shrank by £4.9bn to £33.8bn compared with 2015, with the 13% reduction much smaller than the 23% fall the Office for Budget Responsibility expected to see for the full year.

Economists said the improvement in UK public finances was partly due to one-off timing factors and is unlikely to continue due to the post-Brexit slowdown.

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