UK budget surplus misses target

The UK public purse showed a surplus of £1.3bn in July, compared to the same month last year, according to the Office for National Statistics (ONS).

It is below a forecast of a £2.7bn surplus, according to a Reuters poll of economists.

Public sector finances usually show a surplus in July because of income tax payments from individuals.

Although most tax receipts were a little higher compared to last year, government spending also rose – up 4.2% or £2.6bn.