Worse than forecast

Deficit misses March forecasts but government hits target

Government borrowing

Cumulative public sector net borrowing by month. UK, all data excluding public sector banks. £bn


2015-16


2016-17

0

20

40

60

Apr

Jun

Aug

Oct

Dec

Feb

Guardian graphic | Source: ONS


As the election approaches, chancellor Philip Hammond will be relieved to have met his target to cut the deficit over the last tax year. Borrowing for the 12 months to the end of March was £52bn, roughly in line with the £51.7bn predicted by the government’s independent forecaster, the Office for Budget Responsibility. That was a 28% drop from the previous year, helped by strong tax receipts as the economy defied gloomy expectations in the wake of the Brexit vote. But for March alone, the deficit was wider than expected at £5.1bn versus forecasts for £3.2bn.