Public sector borrowing rises to £12.4bn in June

Suzie Neuwirth

PUBLIC sector borrowing rose to £12.4bn in June, according to new figures from the Office for National Statistics today.

This is £0.5bn higher year-on-year, the data said.

However, in 2012/13, public sector net borrowing excluding factors such as the transfer of the Royal Mail Pension Plan and the transfers from the Bank of England Asset Purchase Facility Fun was £, a £2.1bn decrease from 2011/12.

“While other indicators are pointing to signs of life in the UK economy, the public finances have yet to see much of a boost from the nascent upturn,” said Martin Beck, UK economist, Capital Economics.

"Beneath all the temporary distortions, the public finances remain a long way from health."