British Prime Minister Boris Johnson (Image: TOBIAS SCHWARZ/AFP/Getty Images)
Public-sector finance figures from the Office for National Statistics showed the Government’s balance sheet was £1.3billion in the black in July. City analysts had forecast the figure would be £2.7billion. In July last year, the Treasury posted a £2.2billion surplus. The below-expectations figure followed extra spending pressures on the Government as a result of preparations for a possible no-deal Brexit.
Britain’s public finances routinely show a surplus every July due to an annual surge in self-assessment income tax payments.
Total tax income was 0.5 percent lower last month than in July 2018 following a 1.1 percent fall in corporation tax. Income tax and VAT receipts were both higher than last year, but not by enough to cancel out the corporation tax slump.
Government spending was also £2.6billion higher last month than in July 2018.
Borrowing for the first four months of the financial year has surged to