Feb public finances worsen less than expected

The Office for National Statistics said that public sector net borrowing in February was 12.361 billion pounds, below economists forecast of 14.75 billion but well above the 8.766 billion pounds in February 2009.

The cumulative figure for the tax year to date rose to 131.867 billion pounds, suggesting that the government may undershoot its forecast borrowing for the year to April 2010, which was 170.4 billion including financial interventions.

January's PSNB figure was revised sharply downwards to just 43 million pounds from 4.339 billion pounds. The ONS said revisions to back data for the year had reduced overall borrowing for 2009/10 by 2.9 billion pounds.

The cash measure of borrowing came in at 7.703 billion pounds, again below forecasts for a reading of 11.0 billion but well above the 4.681 billion in February 2009.

The government, which will deliver its annual Budget on March 24, has pledged to halve its budget deficit over the next four years.