British borrowing drops sharply in July

AP News
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Posted: Aug 19, 2011 5:13 AM
British borrowing drops sharply in July

Official figures show that British government borrowed far less in July than it did in the same month a year ago.

The Office for National Statistics says Friday that public sector net borrowing, which excludes financial interventions such as bank bailouts, was 20 million pounds ($33 million), way down on last year's equivalent 3.5 billion pounds ($5.8 billion). It was also much lower than the 2.5 billion pound ($4.1 billion) shortfall expected in markets.

The statistics office said the levy on banks' balance sheets contributed some 660 million pounds ($1.1 billion) in July while public finances were also boosted by larger corporation tax receipts, sales taxes and lower spending by local government.