MNI DATA BRIEF: UK Borrowing Falls Again From Elevated Levels

UK public sector borrowing continued to decline in May, slipping to GBP24.339 billion from a downwardly-revised GBP29.066 billion in April (originally reported at GBP31.696 billion). That leaves borrowing well below the GBP43.763 billion a year ago, the Office for National Statistics said Tuesday. Borrowing has been revised downward in every month since the pandemic began, although the revisions have decreased in recent months.

VAT receipts rose by 23.0% over last May, but remain 2.1% below the same month of 2019, while corporation tax fell by 8.4% over 2020, remaining 22.7% below May of 2019. Government expenditure fell by 12.3% over May 2020, but remains 28.6% above the same month of 2019. Despite the fall, borrowing was the second-highest May on record, and remains nearly four times as high as the GBP5.441 billion borrowing in the same month of 2019. CGNCR (excluding irregulars) declined to GBP23.857 billion from GBP30.535 billion in April and GBP63.024 billion in May of 2020.