Public borrowing falls despite corporate tax slump
- The government borrowed less than expected in December despite a signal that the economy’s weakness at the end of last year hit corporate tax receipts.
- The ONS said the budget deficit – which measures the shortfall between public spending and tax income – stood at £4.8bn in December, down slightly from the same month a year ago.
- City economists had forecast borrowing of £5.3bn. However, borrowing for the first nine months of the 2019 financial year stood at £54.6bn, about 8% higher than it was for the same period in 2018.
- Corporate tax receipts for the year to date were down by 3.4%, the sharpest annual drop since 2012-13, in a signal that weaker economic growth has dragged down tax receipts.