MNI 5 THINGS: UK 2017/18 Borrowing Revised Lower

By Jai Lakhani, Jamie Satchithanantham, Laurie Laird

     LONDON (MNI) - The following are the key points from the ONS' April public

sector finances data published Tuesday by the Office for National Statistics.

     - Fiscal year borrowing for 2017/18 was revised markedly lower, down

stg2.1bn to stg40.5bn, the lowest since 2006/07. The downward revision was

driven largely by lower current and capital expenditure and higher VAT and

corporation receipts.

     - With borrowing undershooting government expectations by more than

initially expected, there will be even more pressure on Chancellor Hammond to

loosen the purse strings and commit to increased public spending.

     - April borrowing came in below its year-ago level, extending a trend seen

for much of last year. Borrowing came in at stg7.840bn, the lowest April since

2008.

     - Soft drinks tax sweetened the April borrowing figures to the tune of

stg13 million. The levy was imposed on April 6 and may have disappointed the

government which aimed to collect stg240 million annually from the tax.

     - VAT receipts were up 2.8% y/y in April to stg 11.5bn. Though not a given,

it suggests retail activity may have perked upon the month -- April retail sales

data is due for release Thursday.

--MNI London Bureau; tel: +44 203-586-2225; email: les.commons@marketnews.com

[TOPICS: MABDS$,MAUDR$,MAUDS$,M$B$$$,M$E$$$,M$U$$$]