Public sector records small but unexpected July deficit

The UK public sector recorded a small but unexpected deficit in July.

Public sector net borrowing, excluding the cost of financial interventions, totalled £62m, according to the Office for National Statistics (ONS).

In the past two years, corporate and income tax receipts pushed the public purse into a July surplus, and markets expected a £2.5bn surplus this time.

The data remains subject to revision. The £823m surplus recorded in July 2012 was originally reported as a deficit.

The BBC's Chief Economics Correspondent Hugh Pym looks at the figures in details.