LONDON: A surge in corporation tax receipts has helped cut UK borrowing by more than a quarter in the past financial year, leaving the government on target to hit forecasts for deficit reduction.
Corporation tax receipts increased by more than 21 per cent in the past year, to a record high of £55.6bn, according to data published by the Office for National Statistics on Tuesday. Income tax receipts also increased by 4.7 per cent, to £184bn, while total expenditure increased by 1.4 per cent to £661bn. “Public finances over 2016/17 benefited from the resilience of the economy and a strong labour market which lifted tax receipts,” said Howard Archer, chief UK economist at IHS Markit.