UK government borrowing lower than expected in July

The Borrowing of the United Kingdom was lower than expected in July after an increase in tax and national insurance receipts.

The National Statistics Office (Ones) said the difference between borrowing – public expenditures and tax revenue was £ 1.1 billion in July and was 2.3 billion less than the same month last year.

Ones was the lowest July figure for three years after the government’s tax increases in April.

Ones said that the borrowing reached £ 60 billion in the first four months of the fiscal year.

For the year so far, this total is compatible with what the Budget Responsibility Office (OBR) predicted in March.

July saw that income tax receipts increased by 4.5 billion pounds, and Ones said that there was an increase in the National Insurance (NI) contributions. The ratio of employers’ contributions were increased by the government in April.

Despite the lower borrowing figure than expected in July, KPMG UK senior economist Dennis Tatarkov said, “long -term picture remains challenging for public finances.”

He said: “The next budget is likely to focus on taking any potential lack of potential deficiency against the existing financial objectives that we estimate as £ 26.2 billion.