Strong tax receipts helped the Government borrow less than expected in July, fuelling the debate over potential tax cuts.

Public borrowing stood at £4.3bn last month, according to the Office for National Statistics (ONS).

This was less than the £5bn forecast by analysts and driven by a 6.3pc rise in tax revenues.

Britain’s level of borrowing in 2023 is higher than last year, but it remains £11.3bn less than the £68bn forecast by the Office for Budget Responsibility just a few months ago.

The ONS said receipts from self-assessment were up by more than a quarter to £11.8bn in July.