LONDON (MNI) – The UK Treasury insisted today that the UK
government’s deficit reduction strategy is working despite National
Statistics’ data showing net borrowing rose to its highest ever level
for an April, as spending growth picked up significantly.
“One-off factors affected borrowing this month, but it is clear
from the downward revision to last year’s borrowing figures that the
Government’s deficit reduction strategy is making headway in dealing
with our unsustainable deficit. Borrowing was now over stg17 billion
lower last year than in 2009-10,” the statement said.
“April tax receipts were stg0.3bn lower than last April, this is
entirely due to the one-off payment of the bank payroll tax, the gross
yield of which was contained in last April’s figures,” the statement
added.
Earlier today, National Statistics revealed that receipts growth
was down 0.8% on the year, driven by a 10% fall in taxes on production
due to the boost to revenue from the payroll tax last year.
The current budget deficit rose to stg8.388 billion in April from
stg5.58 billion in April 2010, the largest April shortfall on record.
The Public Sector Net Cash Requirement stood at stg3.259 billion in
April following a net repayment of stg5.834 billion last year and above
the median forecast of stg2 billion.
–London bureau: 0044 20 7862 7491; email: ukeditorial@marketnews.com
[TOPICS: M$B$$$,MGB$$$,MFB$$$,MFBBO]
