The UK government has begun to see results from its austerity programme with public sector borrowing falling from 120.9 billion in the 2012 finical year to 120.6 billion in 2013.

The slight reduction comes as the government seeks to eliminate the budget deficit by 2017-2018.

The savings come under the Office for Budget Responsibility (OBR) forecast, which expected borrowing to be at the same level.

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The change of £0.3 billion in borrowing comes as the IMF warns of the dangers of the UK government’s austerity measures in restricting economic recovery, with another major credit agency downgrading the UK’s status from AAA in February.

Further cuts are expected to have a much greater impact on savings and services as they come into effect over the coming years.

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