UK budget deficit shrinks in September 2017

October 21, 2017 9:03 amComments Off on UK budget deficit shrinks in September 2017Views: 72

UK budget deficitThe UK budget deficit shrinks in September 2017, exceeding the economists expectations, supported by a rise in revenue from income taxes and VAT. The UK budget deficit amounted to 5.9 billion GBP against 6.6 billion GBP an year earlier, according to data from the National Statistical Office. The value is less than the estimated 6.5 billion GBP.

On an annual basis, revenues grew by 3.4%, with taxes on income increasing by 3.2% and by VAT rising by 3.6%. There is also a 20% leap in revenue from a stamp duty on property transactions.

The deficit for the first fiscal half year (April to September) is 32.5 billion GBP, which is more than 7% less than the same period last year.

The data comes before Finance Minister Philip Hammond to present the draft budget in November 2017. For years, austerity measures have narrowed the deficit from 10% of GDP since the financial crisis to 2.3% last year. London pledges a balanced budget by 2025.

Last month, however, the Budget Liability Office said the authorities have significantly outpaced their labor productivity forecasts, which will have repercussions on growth and public finances. The regulator will resume its forecasts next month. According to the latest forecast, productivity growth will accelerate slowly to 1.8% in 2021.

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