Small budget surplus in January, say economists
GOVERNMENT finances are expected to show a surplus when January’s figures are published by the Office for National Statistics (ONS) tomorrow.
The month typically sees large receipts as self-assessment income tax payments are made – January of 2011 registered a budget surplus of £5.175bn, for example, and was one of only two months without a deficit.
In the first nine months of this financial year borrowing hit £103.3bn, compared with £114.6bn in same period of the previous year.
If that performance is maintained, annual borrowing will fall to £123bn, compared to a £127bn forecast, according to IHS Global Insight.
However, GDP fell an estimated 0.2 per cent in the final quarter of 2011 and unemployment rose from 7.9 per cent in the last quarter of 2010 to 8.4 per cent in late 2011, which is likely to hit tax revenues and push up government spending on unemployment benefits, hitting the budget figures.