With the reopening of the UK economy, public sector borrowing fell in June
Compared with the same month last year, public sector borrowing in the UK declined in June because the reopening of the economy supported tax revenue and cut government spending.
The National Bureau of Statistics of the United Kingdom said on Wednesday that the net borrowing of the public sector was estimated at 22.8 billion pounds last month, a decrease of 5.5 billion pounds from June 2020.
This figure is lower than the £25.2 billion predicted by the Office of Budget Responsibility, the UK’s financial watchdog, because the economic recovery is faster than expected in the March budget.
However, due to the pressure on public finances caused by the pandemic, this figure is the second highest June borrowing figure since the monthly record in 1993.
Isabel Stockton, a research economist at the Institute of Finance, said: “The stronger economic growth and the resulting stronger income will be good news for the chancellor.” But she added that due to Covid-19 or Any additional spending in areas such as social care “may require spending cuts elsewhere or further tax increases.”
According to provisional estimates, the central government’s revenue in June was 62.2 billion pounds, an increase of 9.5 billion pounds over the same month last year, and was stronger than the OBR forecast of 57.7 billion pounds, because activities rebounded as many businesses reopened.
At the same time, central government agencies spent 84.1 billion pounds, a decrease of 2.5 billion pounds from June 2020.
Despite the improvement, as of the end of June, the public sector’s net debt or long-term accumulated borrowing accounted for approximately 99.7% of GDP, which was the highest ratio since March 1961, when the country was decreasing for the second time. The debt of the world war.
He said that Chancellor of the Exchequer Rishi Sunak was “proud of the unprecedented package of support provided to jobs and businesses,” but added that “it is also correct that we ensure that the medium-term debt is still under control.”