UK Economics

We don’t need EU! Brexit effect brings UK borrowing down to lowest level in DECADE

BRITAIN’S Brexit boom has brought Government borrowing down to its lowest level for 10 years.


According to figures from the Office for National Statistics (ONS) net public borrowing dropped by £1.3 billion to £5.7 billion in contrast to the year before.It means Theresa May’s government in on track to balance the books and is the lowest level of borrowing since the last Labour Government oversaw the banking crisis which caused the biggest economic crash since the 1930s.

The figure was below the estimate put out by many leading economists and is evidence that the Remain campaign’s Project Fear is wrong in suggesting Brexit would severely damage the economy.

It means Government borrowing for the current financial year – April to August 2017 – eased back by £200 million to £28.3 billion – also the lowest level for 10 years.

Philip HammondGETTY

Brexit boom as borrowing drops lowest level for 10 years and Trump and Trudeau hail Brexit

Howard Archer

The Office for Budget Responsibility (OBR) – Britain’s fiscal referee – has forecast borrowing to come in at £58.3 billion for the financial year ending in March 2018.Mrs May has vowed to deliver a balanced budget by the “middle of the next decade”, knocking back Mr Hammond’s previous target of putting the public finances back in the black by 2020.

A spokesman for the Treasury said: “We have made substantial progress in reducing the deficit, whilst taking a balanced approach that allows us to invest in our infrastructure and public services.

theresa mayGETTY

Mrs May’s government in on track to balance the books

“This approach is working but the national debt is still too high, so we must continue to live within our means and start reducing our debt.”Howard Archer, chief economic adviser at EY ITEM Club, said the result was a boost for the Chancellor as November’s budget looms.

He said: “It looks increasingly like the Chancellor will have some wiggle room in November’s budget.”

The figures came in after a week where US President Donald Trump and Canadian Prime Minister Justin Trudeau have hailed the prospects for Brexit Britain and suggested that it could bring new prosperity through trade deals once free of Brussels rule.

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