British public finances continued to improve slightly in June, particularly after a decline in employment support and an increase in tax revenues, even as public borrowing remained close to its all-time high.
The Office for National Statistics (ONS) reported on Wednesday that total public sector borrowing for June is projected to be £22.8 billion, the second largest on record since these figures began three decades ago, but in a year Marks a decline of £5.5 billion. Public borrowing for the fiscal year ended March is estimated at £297.7 billion, £1.5 billion lower than the previous estimate, but at the highest level since the introduction of these figures in 1946. It represents 14.2% of the country. GDP, and less than the $30 billion estimated by the Public Budget Forecasting Institute, OBR.
Rishi Sunak, the Chancellor of the Exchequer, reacted to these figures saying to himself “Proud of all the support measures we’ve taken to protect jobs and help thousands of businesses survive the pandemic“But he adds”It is also advisable to ensure that debt remains under control in the medium term». «This is why I made difficult choices during the last budget to put public finances back on a sustainable path.He argues.
The ONS notes that “Government aid to individuals and businesses during the pandemic contributed to a £204.3 billion increase in current government spending“During the fiscal year ending March 2021.” Recovery expected to continue at a faster pace than OBR predicted in MarchEY Item Club economist Martin Beck estimates the current OBR estimate of the long-term impact of the pandemic on the UK economy at 3% of GDP, he says.seem more and more pessimistic». «If the OBR revises this forecast downward, it will give the Chancellor more flexibility for his next budget.Expected in the fall, Beck’s finale.
However, the think tank Institute for Fiscal Studies (IFS) judges that “Despite improvements in public finances this year, the chancellor should have little room to maneuver for his next budget bill». «If the economy picks up faster than expected in the budget presented in March», «This may not translate into a sustainable better for the economybecause of “particularly”Markof the pandemic on the economy, and of interest rates that will at some point rise above their current historical lows. The IFS therefore expects a pre-Covid-19 budget cut of around £17 billion to maintain the current budget plan, with three sectors likely to be particularly affected: health, education and public transport.