The U.K. government borrowing for the previous financial year was less than estimated due to cyclical factors, the Office for Budget Responsibility said Thursday. But these components will disappear as the economy recovers, it said.
"The smaller overestimate of borrowing in our March 2013 forecast for 2013-14 was almost entirely explained by the cyclical component of borrowing being lower than expected, in other words the element that will disappear as the economy recovers," it said.
The March 2013 borrowing forecast error for 2013-14 was a GBP 12.1 billion over-estimate compared with the latest outturn.
Earlier this week, OBR Chairman Robert Chote said income tax receipts are likely to fall short of the government's target for the current financial year despite record employment.
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June 19, 2026 16:46 ET Major central banks continued to dominate the economic news flow this week too, led by the Federal Reserve, as they announced their latest policy decisions. The Federal Reserve policy session was in focus as it was the first to be led by the new chief Kevin Warsh. In Europe, central banks of the U.K. and Switzerland announced their rate decisions. In Asia, the Bank of Japan drew attention for its policy moves, while data out of China threw some light on the state of the economy.