Government borrowing figures boost for Tories

Pre-election lift for chancellor as borrowing in 2014-15 falls to 87.3bn from 98.4bn last year

UK government borrowing declined by less than expected last month, but still gave the coalition a boost after the official forecast of Britain's annual budget deficit proved to be too gloomy.

Public sector borrowing was 7.4bn in March, boosted by higher tax receipts and a decline in government borrowing costs. Together with a 2bn downward revision to borrowing in previous months, this left borrowing during the 2014-15 fiscal year, which runs to the end of March, at 87.3bn, below last year's 98.4bn total and the Office for Budget Responsibility's forecast of 90.2bn.