UK Public Finances Were in the Black in July
August 21 2018 - 05:05AM
Dow Jones News
By Jason Douglas
LONDON--U.K. government borrowing in the first four months of
the fiscal year was the lowest in 16 years, helped by the largest
surplus for the month of July since 2000.
The figures suggest that Treasury chief Philip Hammond is on
track to close Britain's budget deficit within the next few years
provided the economy continues to grow.
The U.K. recorded a surplus of 2 billion pounds ($2.55 billion)
in July, the Office for National Statistics said Tuesday. A surplus
isn't unusual in July as it coincides with an influx of income-tax
receipts, but last month's was the largest July surplus for 18
years, the ONS said.
Government coffers also got a boost from higher payroll and
corporate taxes than a year earlier, reflecting steady if
unspectacular growth in the economy.
Borrowing is forecast to fall again over the full fiscal year
thanks to higher tax revenue and a continued squeeze on
outlays.
Mr. Hammond has come under pressure from some in his own party
to boost public spending after a decade of belt-tightening.
However, he has resisted, preferring instead to keep a tight rein
on government expenditure with the goal of amassing fiscal
firepower to support the economy in the event that the U.K.'s
planned exit from the European Union in March 2019 hurts
growth.
Write to Jason Douglas at Jason.Douglas@wsj.com
(END) Dow Jones Newswires
August 21, 2018 04:50 ET (08:50 GMT)
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