Government debt lower than forecast

The news comes after January borrowing hit a record high for the month of £4.3bn, but this has now been revised down to just £43m. Total borrowing in the 2009/10 tax year is £130bn, compared to a Treasury forecast of £178bn for the year ending 31 March 2010. The increase in VAT and a new tax on bank bonuses are thought to be responsible for the improvement in public finances. Analysts now believe the Government's full-year borrowing figures could be below forecast.