July surplus is the first for 15 years

TAXPAYERS have handed the Treasury its first July budget surplus in 15 years in a boost for Chancellor Philip Hammond.

The Exchequer collected £200million more than it spent last month – the first time this has happened in July since 2002. It is a sharp turnaround from last year when spending exceeded income by £300million.

But borrowing in the first four months of the tax year, which started in April, was higher than a year earlier. The national debt stands at more than £1.75trillion and is likely to hit £2trillion in coming years as Britain continues to live beyond its means.

And the Chancellor has indicated he will only balance the books by the middle of the next decade, meaning Britain would have been running deficits from 2001 to 2025.

That would be the longest period of consecutive deficits since Britain was stuck in the red between 1793 and 1817 – covering the period of the Napoleonic wars. ÷Flights could be cancelled and the UK’s air travel industry ruined before Brexit unless the Government quickly strikes a deal with the EU, a report has claimed.

The paper, compiled on behalf of Britain’s airports, said a stalemate during negotiations could see passenger numbers fall by 41 per cent.

The concerns are prompted by the lack of a back-up system to replace current EU agreements – which allow airlines to operate unlimited flights across the continent – if no Brexit deal is reached.