UK budget deficit to increase this year amid living standards squeeze

Figures show slowdown starting to hit public finances, but public borrowing fell in May in boost for Philip Hammond

The government's spending deficit is on course to worsen this year as official figures show the economic slowdown is beginning to take a toll on the UK's public finances.

As ministers struggle with demands for higher spending on health, police and social care, the Office for National Statistics (ONS) said public borrowing was narrowly lower in May than the same month last year. Public sector net borrowing excluding the nationalised banks was 6.7bn, down from 7.1bn a year earlier and slightly below the consensus expectation of 6.8bn.

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