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Response to new ONS public sector finances data

Press release

Responding to the latest ONS public sector finances data, Isabel Stockton, Research Economist at the Institute for Fiscal Studies said:

"Borrowing in April 2021 was the second highest on record, coming in below the April record that was set last year. This means that borrowing over the last twelve months is now falling rather than rising. But at an estimated £32 billion April's borrowing was still £21 billion above - or almost three times bigger - than the £11 billion borrowed in April 2019. How quickly it comes down will be mainly driven by how swiftly, and how fully, the economy recovers as the lockdown eases. Growth prospects for 2021 have increased materially in recent months which, if realised, should deliver greater tax revenues in the current financial year. The average of recently made forecasts for the growth this year now stands at 6.5% which is considerably higher than the 4.0% that the Office for Budget Responsibility forecast used in the March Budget."

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