Sugar Tax to Provide Healthy Start to.......>

UK DATA: Sugar Tax to Provide Healthy Start to 2018/19 UK Borrowing

----------------------------------------------------------------

UK April borrowing figures, released today by the ONS, will mark the start of

the 2018/19 fiscal year. Typically, little can be drawn from the borrowing

figures until we reach at least the half-way mark but one thing we can highlight

is the impending tax revenue boost stemming from the recently implemented sugar

tax levied on beverages. While some companies have reacted to the tax by simply

reducing their sugar quantities per product, the government coffers will

nonetheless see a boost via this channel. Borrowing came in at stg42.6bn in

2017/18, some stg2.6bn below the OBR's forecast and the body expects borrowing

will fall further this financial year to stg37.1bn. Last April borrowing came in

at stg9.2bn and the market consensus is for April 2018 to undershoot this.