Boost for Hammond as budget deficit hits lowest level since 2007

Chancellor may ease austerity as public sector net borrowing falls to 42.6bn for the last financial year

Britain's budget deficit has dropped to the lowest level since before the financial crisis, laying the ground for Philip Hammond to raise government spending on public services later this year.

The Office for National Statistics said public sector net borrowing, excluding the state-owned banks, dropped by 3.5bn to 42.6bn in the last financial year, cutting the budget deficit to the lowest level since the year ending March 2007.

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