Public finances are starting to benefit from economic growth, as May’s public borrowing falls to eight year low.

Britain’s borrowing fell from £12.350bn in May 2014 to £10.129bn this year.

The drop is attributed to May’s strong growth in income tax receipts, which rose by 5.3% on the year to £10.8bn.

George Osborne’s focus on deficit reduction looks set to continue as the Conservatives move into their second term in office. Osborne is due to make a post-election budget statement on July 8; in March’s statement he aimed to cut this year’s deficit to 75.3 billion pounds, roughly 4 percent of GDP, from an estimated 90.2 billion in 2014/15. Economists say further cuts to public services and welfare are to be expected.