A new report has shown that the UK’s budget deficit narrowed in May, aided by a recovery in value added tax receipts. The Office for National Statistics published that the deficit in May was at £6.7bn; down £300m compared with the same month in 2016.
The financial year-to-date shows the amount of borrowing at the lowest rate since 2008, with borrowing currently at £16.1bn. The UK has been struggling to fix its finances since borrowing surged during and after the financial crisis.
Public finances were boosted in May due to the biggest intake of value added tax receipts for any May on record. There have been warnings that the UK economy will slow as the negotiations to leave the EU, progress in the coming months. The Chancellor Philip Hammond recently said that although people are weary following the great recession seven years ago, he will stick to the rules set out in the budget last year.
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