Public sector back in the black

BRITAIN'S public finances swung back into the black last month, although official figures today showed the promised Government investment in services was still well below plan.

The Office for National Statistics reported a public sector net cash surplus of £7.1bn in July, rebounding from a similar-sized deficit in June.

Spending by Government departments was up 6.8% on the year but was still well below Chancellor Gordon Brown's plans, while net new investment outlay was actually flat on a year ago. The Chancellor wants public investment to grow three times as fast as the economy as a whole over the next three years.

The pound fell to near six-week lows, off a quarter of a cent to $1.5238, amid hopes of a long-term rally in Wall Street shares.