MNI DATA IMPACT: UK Govt Spending Surge Offsets Jan Tax Take>

By Les Commons and Laurie Laird

     LONDON (MNI) - A robust increase in self-assessment tax receipts 

boosted Treasury coffers into surplus in January, although a government 

spending spree and falling corporate tax receipts continue to strain 

fiscal finances. 

     The following are the key points from public sector finance data 

published by the Office for National Statistics Friday.

     - The Treasury received a payment of GBP9.813 billion in January, 

courtesy of a 9.8% surge in self-assessment tax receipts to the highest 

level on record. However, the increase in self-assessment receipts was 

lower than the 15.8% gain recorded in January 2019. 

     - Overall, the surplus fell to GBP9.813 billion in January, below 

the GBP11.939 billion recorded a year earlier, as the government 

extended its spending splurge.

     - Fiscal spending on staff and services jumped by 6.5% to GBP2.4 

billion, the highest January on record. Over the year to date, spending 

on staff and services increase by 5.3% to GBP19.5 billion, also the 

highest on record. 

     - Borrowing was back below the Office of Budget Responsibilities 

full year forecast of GBP47.6 billion, with the current YTD total at 

GBP44.8 billion. There are, however, two more months of data left for 

the full year comparison. The OBR could also amend its target when it 

releases its updated forecasts alongside the March 11 budget.

     - Central government net cash requirement in January stood at 

GBP37.7 billion excluding asset resolution and Network rail, 

year-to-date, which was GBP21.2 billion higher that the same period of 

the last fiscal year.

     - Corporate tax receipts continue to disappoint, declining by 6.4% 

from January 2019, the biggest fall in any calendar month since May 

2018. Over the financial year to date, corporate tax receipts have 

declined by 3.2%, the biggest fall since the 2012/13 fiscal year. With 

business investment sluggish, corporate tax receipts are unlikely to 

rebound over the near term.       

-London bureau: 44 (0) 203 865 3812; email: ukeditorial@marketnews.com

[TOPICS: M$B$$$,MABDS$]