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

The government borrowed slightly less than expected in June, according to 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, about £7.9bn lower than a year earlier, although analysts said challenges remained over the UK's public finances. Other data showed the unemployment rate was unchanged, with the Office for National Statistics (ONS) saying the labour market was "relatively steady". However, while the borrowing figure was less than forecast, the ONS said total debt was high by historical standards and close to the annual value of the 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 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, according to the Office for National Statistics (ONS). While this is down £3.7bn from the same period last year, it is £2.7bn above the OBR's forecast.