UK Budget Deficit £7 Billion Less than Expected

May 23, 2010 Updated: May 23, 2010

LONDON—The annual adjusted UK budget deficit now stands at £7 billion less than predicted, despite last month’s borrowing reaching the highest April shortfall on record.

The Office for National Statistics (ONS) said tax returns in March were higher than expected and a recalculation of National Income was undertaken.

It showed national borrowing is slowing down.

However, last year's budget deficit still remains the biggest since records began after World War II at £156 billion.

George Osborne, the new Chancellor, has said he will outline on Monday, May 24, how the first £6 billion will be saved.

A Treasury spokesman said: "The chancellor has made clear that tackling the deficit must start now, which is why £6 billion of savings this year will be set out on Monday."

The statement continued: “It is welcome that borrowing has come in lower than expected for last year due to a windfall on tax receipts, but borrowing in April and for last year was still at record levels, which is why we need to act now to cut the deficit."

The full budget will be announced on June 22.