Head of Economics Suren Thiru discusses the public sector finances for July 2016.
Public sector net borrowing, excluding public sector banks, was in a surplus of £1.0 billion in July 2016, down by £0.2 billion compared with July 2015
Income Tax-related payments increased by 1.5%. Corporation Tax payments rose by 4.4%
Public sector net debt, excluding public sector banks, at the end of July 2016 was 82.9% of GDP
Commenting on the public sector finances for July 2016, published today by the ONS, Suren Thiru, Head of Economics at the British Chambers of Commerce (BCC), said:
“Although the UK’s public finances recorded a surplus in July, due to stronger corporation tax receipts, the improvement was less than many had expected.
“Fixing the public finances remains a major challenge, and is likely to be an increasingly uphill task if economic growth slows in the coming months. If the economy does weaken, the UK will struggle to generate sufficient tax receipts needed to make meaningful progress in reducing the deficit.
“More needs to be done to strengthen the UK’s tax base. The government should use the extra fiscal headroom from abandoning the 2020 target to support firms looking to invest, and deliver on major infrastructure projects that will boost jobs and growth.”
Notes to editors:
The British Chambers of Commerce (BCC) sits at the heart of a powerful network of 52 Accredited Chambers of Commerce across the UK, representing thousands of businesses of all sizes and within all sectors. Our Global Business Network connects exporters with nearly 40 markets around the world. For more information, visit: www.britishchambers.org.uk
Allan Williams – Senior Press Manager
020 7654 5812 / 07920583381
Chris McIntyre – Press Officer
020 7654 5813 / 07825 746 812
Source: British Chamber Commerce