July surplus is boost for Chancellor

Figures from the Office for National Statistics show public sector net borrowing, excluding state-owned banks, was in surplus by £2bn in July, £1bn more than the surplus logged in July 2017. Economists had been expecting a surplus of £1.1bn. This was the largest July surplus since the year 2000.

Government coffers were bolstered by receipts on self-assessed income tax, which are usually higher in January and to a lesser extent in July.

The figures also showed that the deficit, excluding banks, in the current financial year to date was £12.8bn, which is £8.5bn less than during the same period in 2017.

But public sector net debt, excluding banks, rose by £17.5 bn to £1,777.5bn in July - 84.3 per cent of GDP.