May borrowing Rises as Corporate Tax Falter.>

UK DATA: May borrowing Rises as Corporate Tax Receipts Falter

-UK May PSNB-ex Stg5.115bn from Stg4.154bn a year earlier

-UK May PSNB-ex down to 74.4% of GDP from 75.1% in May of 2018 

-UK YTD borrowing +17.8% y/y to Stg11.9bn

-UK 2018/19 borrowing revised higher to Stg24.0bn vs Stg23.5bn previous

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The dramatic improvement in public finances over the 2018/19 fiscal 

year has ground to a halt. Borrowing increased in May, despite a 

Stg3.1bn decline in net interest payments on index-linked securities in 

the wake of ebbing inflation. Corporate tax receipts slumped by 1.2% 

over the same period of 2018, the first May fall since 2013, following a 

decline in business investment through 2018. However, tax receipts 

remain buoyant, with VAT payments up by 4.4% over May of 2018 and income 

tax receipts increasing by 4.9%. Net social benefits rose by 0.8% in the 

month, for a 2.2% increase over the first two months of the fiscal year.