Britain's budget deficit fell slightly last month, according to official data on Thursday, boosted by strong tax revenues and leaving Finance Minister Philip Hammond well on track to meet his new fiscal targets.
The UK economy has slowed this year after the June 2016 vote to leave the European Union, but public finances are generally only affected by a significant lag, and stronger inflation is boosting some types of tax revenue.
The net debt ratio of the public sector, excluding state-owned banks, dropped to 8.7 billion pounds last month, according to the Office of National Statistics, 1.9% from less than the same month last year. to rise to 8.9 billion pounds.
Borrowings since the beginning of the fiscal year in April totaled 48.1 billion pounds, down 6.1% from the same period of 2016 and are the lowest since 2007 for this point of the financial year.
Last month, the government's budget control agency announced that it was expecting a total loan of 49.9 billion pounds ($ 66.9 billion) to last 12 months.
Hammond's new borrowing target for 2017/18 is significantly lower than the 58.3 billion pound deficit announced by the Office for fiscal accountability in March 2018, as tax revenues have held up better than expected at the downturn in the economy caused by the last Brexit vote of the year.
But the Bureau for fiscal responsibility has been much darker over the next few years as Britain leaves the European Union, reducing its growth forecasts and leaning close to 30 billion pounds of debt. 39, additional borrowing over the next four years.
The OBR expects borrowing to increase by 9% this year and will account for 2.4% of gross domestic product – its first increase on this basis since the financial crisis began to ravage British public finances in 2008 / 09 and pushed debt to almost 10% of annual economic output.
Thursday's figures show a sharp drop in public sector net debt to 1.575 trillion pounds, or 76.7% of annual economic output, down 3 points from the previous month after the reclassification of associations public housing.