The public sector net cash requirement is currently £21.1bn lower than the target. The exchequer has been bolstered by a 14% increase in tax revenues, led by increased corporation tax from company profits.

With inflation well under control and the lowest interest rates for a generation, things continue to look stable and secure. Inflation remains around 2% a year, and Sector Treasury Services predicts that interest rates will remain on hold at 4.5% for the present, softening towards 4% at the end of the year.