UK government Borrowing in the past year fell to the lowest level since the global financial crash, despite the fallout from Brexit and the political intrigues and uncertainties that have marked the latter part of this 2016-17 timeframe.

New data from the Office of National Statistics (ONS) for the year to the end of March 2017 outlines a 27pc fall in borrowing to £52bn, the lowest level of annual UK government borrowing since 2007-08, just prior to the initial impacts and aftershocks of the worldwide economic crisis.

The £20bn fall in the margin between government expenditure and income has occurred at a time of economic growth, and, allied to increased tax receipts for the Exchequer, the lower deficit enabled Chancellor Philip Hammond to meet his 2016-17 borrowing target of £51.7bn.

The ONS confirmed that in the latest full financial year, central government received £674.1bn in income, including £5.07bn in taxes—“This was around 6% more than in the previous financial year,” according to a statement on the ONS website.

“Over the same period, central government spent £698.6 billion; around 2% more than in the previous financial year. Of this amount, just below two-thirds was spent by central government departments (such as health, education and defence), around a third on social benefits (such as pensions, unemployment payments, Child Benefit and Maternity Pay) with the remaining being spent on capital investment and interest on government’s outstanding debt,” the ONS statement added.

Annual UK government borrowing has generally been falling since its peak between April 2009 and March 2010. The £52bn borrowed in the financial year ending March 2017 equates to 2.6pc of gross domestic product. It its approximately one-third of the borrowing of the year to the end of March 2010, which was £151.7bn, 9.9pc of GDP.

Political commentators have said the data underscores Hammond’s and the incumbent Conservatives government’s credibility, providing valuable ammunition for the Tories ahead of the imminent snap general election, called by Prime Minister Theresa May for June 8.

However, these achievements must be measured against a statement issued last month by the Office for Budget Responsibility (OBR), which has forecast a fall in tax receipts & consequent hike in government spending later in 2017.

And John Hawksworth, an economist with PricewaterhouseCoopersUK, while welcoming the latest data on UK government borrowing, this week told BBC News that it was “too soon to be complacent about the state of the public finances“.

Hawksworth suggested that in the year ahead, higher inflation, an ageing population and rising healthcare costs would force tough choices on the government, leading to a reversal of the deficit reductions.

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