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Public Sector Borrowing Drops To Just £20M In July (From £3.5Bn In The Same Month Last Year)

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http://www.dailymail.co.uk/news/article-2027864/Public-sector-borrowing-drops-20m-3-5bn.html

But experts believe the Government will exceed its annual borrowing target by £10bn

July revenue boosted by lower spending and higher VAT and corporation tax receipts

The amount of cash borrowed by the public sector fell to almost negligible levels last month as Government cuts finally began to slow the growth of Britain's debt mountain.

Public Sector Net Borrowing dropped to just £20million for July compared with £3.5billion in the same month last year.

It was substantially lower than the £2.5billion figure experts predicted, but does not include financial interventions such as bank bailouts.

......

He added: 'Borrowing for previous months was revised up, so on current trends it will overshoot the OBR's full-year forecast of £122billion by around £10billion. This overshoot largely reflects the weakness of tax receipts.'

......

Until 2009, the government had not borrowed during the month since 1996.

:blink::blink:

Is this a typo?

Is July normally a good month then for tax receipts?

Still the economy appears sluggish as tax receipts won't be as high as expect...

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http://www.dailymail.co.uk/news/article-2027864/Public-sector-borrowing-drops-20m-3-5bn.html

:blink::blink:

Is this a typo?

Is July normally a good month then for tax receipts?

Still the economy appears sluggish as tax receipts won't be as high as expect...

I don't see how that can be anything other than a typo. Unless they borrowed 40 billion last month and have only spent half of it!

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http://www.dailymail.co.uk/news/article-2027864/Public-sector-borrowing-drops-20m-3-5bn.html

:blink::blink:

Is this a typo?

Is July normally a good month then for tax receipts?

Still the economy appears sluggish as tax receipts won't be as high as expect...

July is when all self employed pay their half year lump. Lots of small businesses too. It is an interesting figure and I hope very much it is an improving trend. But I think it's just a favourable blip at this stage. Lots of trouble ahead and it more likely reflects the last gasp of tpre-downturn 2, than the current reality. Ohter months have been appalling and staggering sums have been borrowed. So look at 6 months borrowings, not one.

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Is this a typo?

[\start rant]

The news headlines on this "news" are really getting on my nerves by their stupidity.....the article states that the net borrowing has increased by only £20M.

So it is in fact not a drop as we in effect borrowed more money than was repaid, i.e. the dept has increased again. So the headlines are wrong as the public sector in fact borrowed far more than £20M as reflected by the subtle use of net in the article, which one can't really call a drop.

[\rant over]

Edited by moesasji

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July is when all self employed pay their half year lump. Lots of small businesses too. It is an interesting figure and I hope very much it is an improving trend. But I think it's just a favourable blip at this stage. Lots of trouble ahead and it more likely reflects the last gasp of tpre-downturn 2, than the current reality. Ohter months have been appalling and staggering sums have been borrowed. So look at 6 months borrowings, not one.

That makes sense although it appears to suggest a very good month in tax receipts of the self employed.

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That makes sense although it appears to suggest a very good month in tax receipts of the self employed.

Could be a reflection of more people being self employed than this time last year.

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That makes sense although it appears to suggest a very good month in tax receipts of the self employed.

Well, I guess a deterioration in the job market (reducing pay, widespread layoffs) would naturally lead to a bounce in the number who are self employed. That means strengthened tax receipts from self employment will be offset against a PAYE take that is down by much more than the self employed tax receipts are up.

Edited by Kinky John

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  • 337 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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