£5bn bonus as Government borrows less

Public sector net borrowing, excluding financial interventions such as bank bailouts, was £18.6bn in March, the Office for National Statistics (ONS) said, bringing the total for the financial year 2010-11 to £141.1bn.

The total for the fiscal year was less than the £146bn forecast by the tax and spending watchdog, the Office for Budget Responsibility, which is used by the Treasury to set its fiscal policy.

The March borrowing figure was in line with City expectations.

Chancellor George Osborne is rolling out deficit-busting austerity measures, which include £81bn of spending cuts and January’s VAT rise from 17.5 per cent to 20 per cent.