Philip Hammond boosted as borrowing revised downwards

Chancellor Philip Hammond has been given a double boost after official figures showed annual Government borrowing was less than first thought and fell in the first month of the new year.

Public sector net borrowing, excluding state-owned banks, fell by £1.6 billion year-on-year in April to £7.8 billion, the lowest April net borrowing since 2008, the Office for National Statistics (ONS) said.

The full-year figure was revised down from the £42.6 billion previously reported to £40.5 billion for the year to the end of March, which was a £5.7 billion drop year-on-year.

The ONS said overall public debt was equivalent to 85.1% of gross domestic product (GDP), standing at £1.8 trillion at the end of April, up £56.8 billion year-on-year.

Howard Archer, chief economic adviser at EY ITEM Club, said the figures were "a double dose of good news" for Mr Hammond.

"Government receipts were helped in April by a strong rise in income tax receipts for the month clearly benefited from strong employment growth," Mr Archer said.

"However, there were a relatively limited rise in VAT receipts which is consistent with recent muted economic activity."