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UK government borrowing has fallen in May due to a rise in income tax and VAT receipts, official figures have shown. The Office for National Statistics (ONS) said that the borrowing fell to £10.13 billion last month, which is down from £12.35 billion the year before. This was also the lowest borrowing figure in that month for eight years.

Excluding public sector banks, public sector net debt stands at £1.5 trillion, which is 80.8% of gross domestic product (GDP), according to the ONS.

Income tax receipts had not been this high during May for four years but it rose £0.5 billion, which is 5.3%, from a year before to £10.8 billion. VAT receipts however rose by £0.6 billion, which is 5.6%, to £10.7 billion. An estimation by the ONS stated that the total public sector borrowing in the financial year to March 2015 was £89.2 billion, or 4.9% of GDP. This figure was £9.3 billion lower than the previous year’s total despite it being higher than the previous estimate.

According to analysts, the drop in government borrowing during May is good news for the chancellor George Osborne at the start of the new fiscal year.