UK government borrowing falls in June

The UK government borrowed slightly less than expected in June, according to official figures published as new prime minister Andy Burnham began setting out measures to cut living costs for households.

Borrowing – the difference between spending and income from taxes – was £16bn last month, £7.9bn lower than at the same point last year, the Office for National Statistics (ONS) said.

Separate figures also showed the unemployment rate remained unchanged between March and May, with the UK statistics body saying the labour market was “relatively steady”.

However while the borrowing figures were better than forecast, the UK is still carrying significant public debt.