Britain last month posted a record budget surplus for a July, but economists are reserving judgment on whether the country's public finances are definitely improving.
Official data today showed the public sector posted a net cash repayment of £10.463 billion in July, some £2 billion higher than a year earlier and better than forecast.
The government's preferred accruals-based measure also swung sharply into the black, posting a surplus of £6.25 billion. This was nearly £4 billion higher than a year earlier.
Chancellor Gordon Brown aims to bring public sector net borrowing down to £36 billion this year after net borrowing of almost £39 billion in the fiscal year ended March 2006.
Net borrowing had posted a record deficit in June, and the latest figures leave borrowing around £2 billion above what it was at the same point last year.
Nevertheless, the Treasury was confident its target for public finances would be met. "We are meeting our strict fiscal rules and will continue to do so," said a Treasury spokesman.
The ONS said the figures were flattered by the fact that July 31st fell on a Monday this year, pushing more receipts into the month compared with last year when July ended on a Sunday.
The surplus was also boosted by changes to tax rules for North Sea oil companies, which now make three payments over the year rather than four. Some receipts that would normally have been paid in April may have ended up in July, which showed corporate tax receipts at a record high for the month.