UK deficit rises steeply after surprise fall in tax receipts
by Phillip Inman Economics correspondent from on (#N6GN)
Chancellor under pressure ahead of spending cuts review as higher Whitehall spending and a dip in self-assessment revenue boost deficit
A fall in income tax receipts sent Britain's deficit spiralling to 12.1bn in August, the widest shortfall in government funding since 2012.
The Office for National Statistics said a dip in corporation tax receipts was also to blame for the worsening situation, which will put pressure on George Osborne ahead of tough expenditure decisions due in November when Whitehall agrees its five-year spending targets.
Related: UK tax and benefit changes worsening inequality, IFS warns
Related: UK budget deficit narrows after boost from taxes and duties
Continue reading...