Britain’s February budget deficit smallest since 2008

Britain had its smallest budget deficit for any February since 2008, as the late arrival of self-assessed tax filings boosted government revenue.

Net borrowing excluding public-sector banks was £6.9bn (€9.5bn) compared with £10.4bn a year earlier, the Office for National Statistics said yesterday. Revenue surged 7.2% and government spending fell 0.7%.

With the May general election on a knife edge, Chancellor of the Exchequer George Osborne is seeking to persuade voters that only his Tory Party can be trusted with recovery and erasing a budget deficit that still amounts to 5% of gross domestic product. In his budget on Wednesday, he held out the prospect of an end to austerity within four years. Labour says the Tories are planning “extreme” spending cuts that would damage public services.