UK government borrowing down €1.3bn in August

The Office for National Statistics (ONS) in the UK has today reported a near £1.3bn drop in British government borrowing in August.

Public-sector net borrowing stripping out the distorting effects of bank bailouts fell to £13.2bn in the month from £14.4bn a year earlier - broadly in line with economists' expectations.

The ONS also revised underlying borrowing for the 2012/13 financial year lower to £115.7bn , down from an earlier estimate of £116.5bn.

The independent Office for Budget Responsibility (OBR), set up to monitor the state's finances, expects underlying public sector net borrowing to rise in the latest financial year to about £120bn .

The deficit in August was nursed lower by a £1.2bn drop in central government borrowing to £12.7bn .

Local government borrowing edged up by around £200m to £1.1bn .

Corporation tax receipts were slightly higher at £1.3bn, but income tax receipts fell to £10.5bn from £11.1bn.