Government borrowing falls and tax receipts rocket, official figures showed yesterday
GOVERNMENT borrowing has fallen in the latest post-Brexit boost for the UK, official figures showed yesterday.
Borrowing is £3billion less than between April and July last year
Borrowing for the financial year to date is £23.7billion – £3billion less than between April and July last year.
The figures came in the first official budget bulletin from the Office for National Statistics since the referendum.
Treasury coffers were swollen last month by a 3.4 per cent rise in tax receipts compared with July last year, partly driven by the annual injection of payments by self-employed people and companies.
Treasury coffers increased following a 3.4 per cent rise in tax receipts compared with July 2015
However, these were offset by a 1.4 per cent rise in Government spending to £58.4billion.
July is normally one of the bumper months for tax receipts
Public finances were in surplus by £1billion – £400million less than economists had forecast and £200million less than in July last year.
Total public sector net debt at the end of July was £1,604.2billion – 82.9 per cent of GDP and £35.3billion more than in July 2015.
Chancellor of the Exchequer, Philip Hammond
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The borrowing figures capped a series of positive economic indicators this week, including strong retail sales after the referendum and good employment and benefit figures in the run-up to and after the June 23 vote.
Laith Khalaf, of financial services firm Hargreaves Lansdown, said: “July is normally one of the bumper months for tax receipts, which is why the Government found itself quids in last month.
“Of course, the elephant in the room is Brexit and what effect this will have on tax receipts. But so far the hard economic data has actually been pretty robust.”