UK government borrows less than expected in July

After an increase in tax and national insurance receipts, the UK government’s loan was less than expected in July.

Born – Difference between public spending and tax income – was £ 1.1bn in July, which was £ 2.3bn lower compared to the same month last year, the National Statistics (ONS) said.

This was the lowest July figure for three years, ONS said, and increased self-assessment income tax payment was helped.

Despite the least intake figures, analysts stated that the Chancellor was still likely to increase taxes in the autumn budget to meet his taxes and spends.

Borrowing in the first four months of the financial year has now reached £ 60BN, the ONS said, which is £ 6.7bn from the same period last year.

The total, for this year, conforms to the office for the Budget Responsibility (OBR) for the official independent forecaster, predicted in March.

July said that income tax receipts grow from £ 4.5BN, ONS said, and also increased by the contribution of National Insurance (NI). In April, there was an increase in the rate of NI contribution of employers by the government.

Speaking to the BBC Today program, the main UK economist Paul Dells said that the latest figures did not change the face of “prediction” Chancellor REVS, which he would do in the budget.

“We feel that he is on a track to remember his fiscal rule with something like £ 17bn, which means that he will need to increase that amount, or if he wants the same buffer against the fiscal rule, he may have to bear something like a £ 27bn in the budget in the £ 10BN March, which is a big task.”

The Chancellor is following two main self-stunned rules for government finance:

• Instead of borrowing, day to day government cost will be paid for tax income

• In 2029-30, to fall in debt as part of national income by the end of this Parliament

KPMG UK senior economist Dennis Tatarkov stated that “long -term photo for public finance is challenging”.

“The upcoming budget is likely to focus on addressing any possible shortage against existing financial goals, which we estimate on £ 26.2BN. However, assessment of deficiency significantly depends on changes in the forecast of OBR.”

Treasury Chief Secretary Darren Jones said: “A lot of taxpayer money has been spent on interest payment for national loan for a long time.

“This is why we are borrowing the government during Parliament – so working people do not have to set the bill and we can invest in better schools, hospitals and services for working families.”