By Jonathan Davies

UK government net borrowing fell £10.8 billion to £87.7bn in the 2014/15 financial year, according to the Office for National Statistics (ONS).

The ONS said net public sector borrowing was down 4.8% as a share of GDP, but net debt was £1.486 trillion or 80.4% of GDP.

In April, net borrowing was down £2.5bn to £6.8bn, the ONS said.

The figures come after the highest VAT income since record began in 1997/98 and the highest corporation tax revenues since 2008. And income tax revenues were up to £11.6bn - the highest April total for two years.

Sumita Shah, Public Sector Policy Manager at ICAEW, said: “These figures are a positive start to the financial year for the new government, with net borrowing down from this time last year, and will provide a boost to the Chancellor ahead of the emergency Budget. It is imperative for this government to see sufficient tax receipts roll in, particularly given the promises made in the campaign, so the increases in revenue from corporation and income taxes will support efforts to reduce the deficit."