Budget deficit now 62 per cent of GDP
The UK's budget deficit now stands at around 62 per cent of gross domestic product (GDP).
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However net borrowing in Britain’s public sector according to the Office of National Statistics fell £1.4bn to £16bn during the year ending May 2010.
The UK's budget deficit was also lower than expected in May, according to the ONS. The public sector posted a net cash requirement of £11.96bn last month, below the expected £20.25bn reading.
Total government debt stood at £903bn in May, up from £774bn in May last year.
Mark Bolsom, head of the UK trading desk at Travelex global business payments, said: "As economic recovery gathered pace in May, private sector spending improved, which is why borrowing undershot forecasts. The key thing now is Tuesday's first Conservative-Liberal budget. We know Osborne is going to cut borrowing but that will have a negative knock on effect on revenues.
"The markets have barely reacted to the news, as the data merely confirms the report from the Office for Budget Responsibility. All eyes also remain firmly on Tuesday's budget, when we expect Osborne to take a tough stance."
