Deficit reduction reaches government target

George Osborne will be having a happy morning after the latest borrowing figures revealed the deficit has hit the government’s target for 2013-14.

The deficit fell by £7.5bn to £107.7bn or 6.6% of GDP – the lowest since the start of the recession.

Part of the reason borrowing fell was because of an increase in tax revenues, particularly stamp duty. In the last financial year, the money brought in by stamp duty went up 37% on the previous year to £12.8bn.

This is largely down to the rapid rises in property values in London where the average house price is now above the 1% stamp duty threshold.

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