July public borrowing to show drop in surplus

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The government has forecast borrowing of 43 billion pounds this financial year but analysts say this is looking unrealistic given the poor growth outlook.

"The Treasury's growth forecasts look way too optimistic at 2.25 to 2.75 percent for next year. The growth outlook will reduce revenues and blow a hole in the public finances," said David Page at Investec.

A Reuters poll last month showed growth this year slowing to 1.5 percent and cooling further to 1.0 percent next year.

(Reporting by Nigel Davies, editing by Gerrard Raven)

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