Britain’s public finances recorded their first July surplus in three years, driven by the strongest tax receipts for the month since records began in 1997. Hayley Platt reports.
A summer surplus for UK finances
It was good start to the weekend for Britain’s finance minister George Osborne.
The country recording its first public finance surplus in July since 2012.
The surplus- which means the government spent less than it raised in taxes – excluding banks surged to £1.2 billion.
It was largely thanks to 18.5 billion pounds of income tax receipts.
The pound rose after the data was released.
CCLA’s James Bevan.
(SOUNDBITE)(ENGLISH) CHIEF INVESTMENT OFFICER AT CCLA, JAMES BEVAN, SAYING:
“I think strategically the pound will continue to strengthen against most currencies and therefore absolutely on a trade-weighted basis that is clearly good news for UK.”
The figures showed that for the first three months of the financial year, the government borrowed £24 billion pounds.
That’s down 23 percent compared with the period April-July of last year.
It’s a boost for Osborne, who last month said he was hoping to bring down the deficit in the current financial year to 69.5 billion or 3.7 percent of economic output.
Further evidence that Britain’s economic recovery is still on track.