UK deficit posts surprise fall — thanks to Europe
THE European Union chipped in to cutting the UK’s deficit last month after a surprise £1.2 billion windfall, official figures revealed today.
Revisions to the EU budget produced the one-off bonus — the biggest such payment since August 2001 — and sliced the December deficit in half to just £2.6 billion. That was the lowest for the month deficit since 2000, and takes borrowing for the financial year so far to £50 billion.
Figures for January and February — both big months for tax receipts should see official borrowing come in below the Office for Budget Responsibility’s £49.9 billion target for the full year.
Stamp duty was unchanged as November’s cut has yet to be felt but high inflation means debt interest payments hit a £43.8 billion high in the nine months to December. @russ_lynch