Public finances for last month were better than expected but the UK is carrying major debt.

The UK government borrowed slightly less than expected in June, according to official figures published as new prime minister Andy Burnham began setting out measures to cut living costs for households. Borrowing - the difference between spending and income from taxes - was £16bn last month, £7.9bn lower than June last year, the Office for National Statistics (ONS) said. Separate figures also showed the unemployment rate was unchanged between March and May, with the ONS saying the labour market was "relatively steady". However while the borrowing figures were better than forecast the ONS said total debt remained near £3 trillion, which is close to the annual value of the entire UK economy. Borrowing for June was slightly below the £16.3bn that had been predicted by the government's official forecaster, the Office for Budget Responsibility (OBR). Ruth Gregory, deputy chief UK economist at Capital Economics, said June's slightly lower than expected borrowing figure was "a rare piece of good news" for the new prime minister and his new chancellor John Healey. However, she added: "Overall, there's no escaping the fact that the public finances are fragile and that there is limited scope for extra borrowing." So far in the current financial year, borrowing has reached a total of £57.6bn. While this is down £3.7bn from the same period last year, it is £2.7bn above the OBR's forecast.