UK Borrowing Reduced by £2 Billion After Tax Error Uncovered

UK borrowing in the first five months of the fiscal year was £2 billion ($2.7 billion) lower than previously thought, a revision that relieves some fiscal pressure on Chancellor of the Exchequer Rachel Reeves.

HM Revenue and Customs found an error in its value-added tax receipts data, the Office for National Statistics said on Wednesday, lowering borrowing between April and August to £81.8 billion. While that still leaves Reeves overshooting official budget forecasts by £9.4 billion, it may help temper concerns about runaway government spending during the Labour Party’s first full year in power.