Government borrowing eases in May

Government borrowing fell in May compared with the same month last year, with the economy in recovery mode after lockdown measures eased.

Borrowing - the difference between spending and tax income - was £24.3bn, official figures show, which was £19.4bn lower than May last year.

However, the figure was the second highest for May since records began.

Borrowing has been hitting record levels, with billions being spent on measures such as furlough payments.

The huge amount of borrowing over the past year has now pushed government debt up to nearly £2.2 trillion, or about 99.2% of GDP - a rate not seen since the early 1960s.

The Office for National Statistics (ONS) now estimates that the government borrowed a total of £299.2bn in the financial year to March.

While that was down by £1.1bn from its previous estimate, it remains the highest level since the end of World War Two.

The ONS said the cost of measures to support individuals and businesses during the pandemic meant that day-to-day spending by the government rose by £204.2bn to £942.6bn last year.