The Exchequer surplus for the first seven months of this year is down on this time last year by some £597m. Figures from the Department of Finance show the surplus stands at just over £2.9bn.
Tax receipts were up to just over £13bn, but this is less than half of what was predicted in the last Budget. The Department said last month that the surplus for the year as a whole would be £500m lower than predicted in the Budget.
In a separate development, the European Central Bank has decided to keep euro zone interest rates on hold at 4.5%, as expected. The decision was taken before the ECB starts a four-week holiday.
However, the Bank of England has responded to demands from manufacturers in Britain and cut rates by 0.25% to 5%. It said that it decided on the reduction to sustain growth in domestic demand in the light of the world economic slowdown.
