UK posts unexpected budget deficit in July as spending rises
Higher spending and a £700 million rise in debt interest pushed July borrowing to £1.8 billion, the Office for National Statistics said.
- Britain's government recorded an unexpected budget deficit of £1.8 billion in July, as higher spending counteracted record self-assessed income tax receipts, the Office for National Statistics reported.
- Central government expenditure on social benefits rose £2 billion in July compared with a year ago, while spending on goods and services, which includes staff costs, increased by £1.2 billion.
- Cumulative borrowing for the first four months of the financial year reached £56.7 billion, exceeding the Office for Budget Responsibility's projection of £54.4 billion for this period.
- Finance Minister John Healey emphasized that fiscal discipline is the "bedrock of our UK economic stability and national security," reaffirming commitment to meeting established fiscal rules.
- RSM chief economist Thomas Pugh expects government borrowing to exceed the OBR forecast for the remainder of the year, likely remaining above 4% of GDP due to higher gilt yields and stubborn inflation.
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UK posts unexpected budget deficit in July as spending up
The UK government recorded an unexpected budget deficit last month, a reminder of the financial constraints facing new finance minister John Healey ahead of his October budget in spite of recent better news on the economy.
In July Britain experienced an unexpected budget deficit, highlighting the fragility of public finances just as Chancellor John Healey begins to elaborate the crucial autumn budget maneuver. (ANSA)
Healey oversees deficit in first month as Chancellor
John Healey oversaw an unexpected deficit in the public finances in his first month as Chancellor, according to new data, in a sign the government may be more restricted than first thought ahead of its first budget. New figures released on Friday showed that government borrowing hit £1.8bn in July. Markets had expected the Office for National Statistics to show that there was no difference between expenditure and receipts in July. The figure was…
UK posts unexpected budget deficit in July as spending rises
Britain's government recorded an unexpected budget deficit last month, a reminder of the financial constraints facing new finance minister John Healey ahead of his October budget in spite of recent better news on the economy.
The UK government has recorded a deficit of £1.8 billion (€2.1 billion) in July, an amount that is above that foreseen by the Office of Budgetary Responsibility (OBR), while Andy Burnham's new cabinet prepares its first budget for October.
Britain recorded an unexpected budget deficit in July, the Office for National Statistics said on Friday. This suggests that despite some positive economic data recently, new Chancellor of the Exchequer John Healey faces significant complications before his budget presentation in October. Info...
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