The Government borrowed £16.9bn less than official figures predicted in the first seven months of the year bolstering hopes that the Chancellor will announce tax cuts in tomorrow’s Autumn Statement.

Public sector net borrowing excluding banks stood at £98.3bn in the first seven months of the financial year, which was £21.9bn more than the same period last year, according to the Office for National Statistics.

However, it was £16.9bn less than the £115.2bn forecast by the Office for Budget Responsibility in March. 

The body will deliver revised borrowing figures at the Chancellor’s Autumn Statement on Wednesday.

For the month of October, total public sector net borrowing excluding public sector banks was £14.9bn, up from £14.3bn the previous month and ahead of analysts forecasts of £12.8bn. 

It was £4.4bn more than the same month last year and the second highest October borrowing since monthly records began in 1993. 

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