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Sancho Panza

UK public finances notch up first July surplus since 2002

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Guardian 22/8/17

'The government ran the first July budget surplus in more than a decade last month, as Britain’s public finances recorded an unexpected leap back into the black with help from an increase in self-assessed tax payments.

Public sector net borrowing last month, excluding the nationalised banks, was in surplus by £184m, the first surplus in that month since 2002, the Office for National Statistics (ONS) said on Tuesday. City economists had expected the government to record a £1bn deficit.

However, Britain is still in the red for the current financial year, as public sector net borrowing excluding state-owned banks increased by £1.9bn to £22.8bn in the four months to July, compared with a year ago.

The Office for Budget Responsibility, the Treasury’s independent forecaster, expects £58.3bn of public sector borrowing during the current financial year, an increase of £13.2bn on the year ending March 2017. That borrowing, excluding the banks, equated to 87.5% of GDP at the end of July, according to the figures.

The borrowing figures come amid rising dissatisfaction with austerity. The chancellor faces increasing pressure to lift the cap on public sector pay, though he may have limited room for manoeuvre if he sticks rigidly to the government’s deficit reduction plan.

Hammond has stated that he remains committed to the fiscal rules he set out at the autumn statement, which aim to lead to a balanced budget by the mid-2020s.

A spokesperson for the Treasury said: “We are making good progress in strengthening our public finances and living within our means. Our national debt, at £65,000 for every UK household, is still too high. That is why we have a clear fiscal plan to reduce our debts and build a stronger economy for every household.”'

 

 

I see many things,but I can't see anything that resembles a viable plan.

 

 

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In 2016 the deadline for the self-employed fell on a weekend, with the result that many payments were not processed until August. To judge whether there has been any real improvement in self-employment receipts we will have to wait for the August data to come out.

PAYE receipts last month were only 1.6% higher than in July 2016. Half the inflation rate.Thats a terrible increase considering we are supposed to be going along nicely.PAYE tax is falling inflation adjusted.VAT is up,likely due to the bump up in prices because of imports costing more.That will start to run off by the end of the year.

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  • 295 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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