UK finances actually showed a modest improvement in August according to official data, showing a promise for the economic recovery. However, as the Office for Budget Responsibility pointed out, there is still “significant uncertainty” with the prospects for full year borrowing.
As Martin Beck of Capital Economics explained, “Following a run of disappointing monthly public sector borrowing numbers, August’s public finances data suggest that the economic recovery could be finally starting to make its presence felt in the fiscal numbers.” From April to August of this year, for instance, the central government receipts were £236.5bn, £18.4bn higher than during the same period the year before.
The Treasury said: “The economy is turning a corner, but there is a long way to go and the government is sticking to the economic plan that has already cut the deficit by a third and enabled the private sector to create over 1.4m new jobs.”