Britain recorded a smaller-than-forecast budget deficit in June as a fall in debt-interest payments and stronger receipts offset increased costs for dealing with the inflation crisis.

The £18.5 billion ($23.8 billion) shortfall left borrowing in the first three months of the fiscal year at £54.4 billion, the Office for National Statistics said Friday. That’s £12.2 billion higher than a year earlier but £7.5 billion less than budget officials forecast in March, raising hopes that Chancellor Jeremy Hunt will be able to cut taxes before a general election expected late next year.