**MNI: 5 Things We Learned From UK Public Sector Finances Data

By Laurie Laird and Jamie Satchithanantham

     **ROME (MNI) - The following are the key points from the ONS' public sector

finances data published Tuesday by the Office for National Statistics.

     - As highlighted in the 5 things to look for preview, the converse

relationship between VAT receipts and official retail sales played itself out in

December. VAT receipts in the month of December hit a record high while total

retail sales volumes slumped to a decade low. VAT receipts rose 4.9% (stg0.6bn)

on the year to stg12.3bn.

     - Also telegraphed in our preview, corporation tax receipts returned to

growth in December. Receipts were up 5.2% on the year to stg14.3bn, bringing a

halt a run of six consecutive months of decline.

     - The public sector finances were flattered by a stg1.2bn credit from the

European Union, reflecting recalculations of member states' budget payments.

That brought borrowing to its lowest level for a December since 2000.

     - Year-to-date borrowing plunged by 11.7% to stg50.0bn, bound to stir

political debate over funding for public services.

     - The December figures do not include any strain on the public purse from

the Jan 15 collapse of large contractor Carillion. The government contributed

38% of Carillion's revenue in 2016 and any future impact on government finances

will be announced in due course, according to the ONS.

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

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