Government borrowing at lowest September level for 10 years

Britain saw its smallest budget deficit for any September in the last 10 years, according to official figures.

Last month’s deficit stood at £5.902bn, down almost 11% compared with the same month last year, the Office for National Statistics (ONS) said.

With many economists having forecast a deficit of about £6.5bn, the news will be a boost for Chancellor Philip Hammond ahead of next month’s Budget.

The deficit for August was also revised down by about £1bn to £4.716bn

September’s figures marked the third straight month in which UK public finances were better than analysts had forecast.

The ONS said public sector net debt, excluding state-owned banks, had increased by £145.2bn since September last year to £1,785.3bn, equivalent to 87.2% of gross domestic product.

A Treasury spokesman said: “Whilst we’ve made great progress getting the deficit down by over two thirds, government borrowing is still far too high at over £150m a day.

“We will continue to take a balanced approach that deals with our debts and allows us to invest in our public services.”

Credit: BBC