By Marcus Leach

Figures released by the Office for National Statistics (ONS) have revealed that public sector net borrowing was down in May.

Total borrowing requirements were £17.4 billion, although that figure excluded bank bail-outs and other interventions.

This figure is down 6% from the same time last year, which is partly due to an increase in VAT receipts.

It is welcome news for the Treasury, having seen an unexpected 5% rise in borrowing for April.

Whilst total spending only rose by 2.2% to £51.7 billion, tax revenues rose by 8.2% to £38 billion off the back of January's rise in VAT to 20%.

Join us on
Follow @freshbusiness