TaxCorporate TaxTax income dives as government borrows £8bn in July

Tax income dives as government borrows £8bn in July

Corporate tax take drops 38%, ending 13 years of July surplus

A drastic drop in tax returns has forced the government to borrow in July for
the first time in over a decade.

It has been 13 years since the government failed to register a surplus in
July, normally a bumper month for tax receipts. Last year the surplus in July
was £5.2m but in 2009 the government was forced to borrow £8bn, raising public
debt to £800bn – or £13,000 for every person in the country, reported the
Times.

The borrowing has been blamed on falling tax revenues and rising costs.
Corporate tax dropped 38% and takings from income tax and CGT fell 14%. At the
same time spending on benefits rose 10% last month.

It is thought that the government could now miss its borrowing forecast of
£175bn this year and could go as high as £200bn.

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