Public borrowing up but we are in control vows George Osborne
PUBLIC finances are being brought under control, the Government insisted yesterday, despite a rise in borrowing last year.
In good news, public sector borrowing fell last month to £12.7billion compared to £15.6billion in the same month last year.
But the Office for National Statistics revealed that revised total public sector net borrowing for the year to April stood at £118.8billion, £300million higher than in 2011-12.
The Government’s opponents seized on the figures as evidence the Coalition’s core mission to drive down Britain’s deficit was failing.
But the Prime Minister’s spokesman said: “Today’s data demonstrates the Government is getting a grip on public spending, the deficit reduction plan is working.”
And a Treasury spokesman said: “Today’s data shows that borrowing is lower than was previously predicted.
“As the Chancellor said this week, the economy is healing; the deficit is down by a third; inflation is down by almost half from its peak and more people are in private sector employment than before.”
The May figure was boosted by an estimated £3.2billion of taxes from UK residents’ Swiss bank accounts.
The figures came as Mr Osborne prepares to set out in his spending review on Wednesday a further £11.5billion of cuts in Whitehall.
Labour Treasury spokesman Chris Leslie said: “With borrowing now confirmed as rising last year, these figures are another blow to George Osborne’s credibility.”