London: Annual UK government borrowing has fallen to a three-year low.

Borrowing, the difference between spending and income from taxes, fell £19.8bn to £132bn in the year to March, the Office for National Statistics (ONS) said, the lowest since 2022-23.

The total was slightly below the £132.7bn that had been predicted by the government's independent forecaster, the Office for Budget Responsibility.

The ONS said borrowing in the month of March was £12.6bn, which was higher than analysts had been expecting. However, the figure was £1.4bn less than a year earlier, and the lowest March borrowing since 2022.

For the year to March, the ONS said borrowing as a proportion of GDP was 4.3% - the lowest since 2019-20, just before the Covid pandemic.