The Office for National Statistics (ONS) figures for August showed that monthly public sector borrowing £11.6bn, which was below the £13bn forecast by the Office for Budget Responsibility. Economists expected this figure to be £11.1bn. The OBR forecasted that total borrowing in the financial year starting in April would be at £69.6bn, it is now £11.4bn lower than this figure. VAT and income tax receipts have risen by nearly £3bn on the same month last year, which helped to bring up total monthly tax receipts to £57.6bn. The fall in inflation has reduced the Treasury’s debt servicing bill. Treasury ministers hope the gradual improve in public finances will provide the Chancellor with the opportunity to announce tax cuts in the spring budget next year.