UK fullyear 202223 budget deficit lower than expected
Energy support costs 41 billion pounds in 6 months to March
March budget deficit 21.5 bln, a bit more than expected
Hunt UK borrowed 39;eyewatering39; sums for COVID, energy shock

LONDON, April 25 Reuters Britain39;s government borrowed less than predicted in the financial year that ended in March, according to data on Tuesday which showed finance minister Jeremy Hunt may be able to adopt a less austere stance ahead of the next general election.

The Office for National Statistics ONS reported borrowing of 139.2 billion pounds 174 billion for the fiscal year to the end of March, or 5.5 of gross domestic product up from 121.1 billion pounds in 202122, or 5.2 of GDP.

The Office for Budget Responsibility whose forecasts are used by the government estimated last month that borrowing for the 202223 financial year would be 152.4 billion pounds, or 6.1 of economic output.

Overall the figures chimed with other readings of Britain39;s economy that point to a betterthanexpected performance in recent months, even if the overall picture remains one of stagnant activity and high inflation.

Hunt faces pressure from lawmakers in his Conservative Party to cut taxes before an election expected in 2024, while public sector workers39; unions are pushing for pay increases to offset the impact of inflation39;s surge above 10.

The big picture is that we remain reasonably convinced that … Hunt will be able to announce a…