UK Tax Growth Boosts Public Accounts

The United Kingdom has increased public finances through July, after steadily increasing tax revenues have lifted the budget surplus, according to figures released today.

The figures released by the Office for National Statistics have highlighted an increase in budget surplus from £8.1 billion last year on July to £8.6 billion.

Growing revenues from stamp duty, corporation and self assessment tax and VAT have been thought to be amongst the biggest contributors to the increase.

Additionally, tax on alcohol and tobacco products also helped bolster the UK’s public budget, with stable sales and increasing tax as a proportion of cost price.

One of the more controversial contributors to the UK funds comes in the way of Inheritance Tax (IHT), which was originally designed to catch only the wealthiest on death. However, with house price growth over the last decade through the roof, and an unchanged threshold for the tax, more and more ordinary people are finding themselves liable for IHT on death.

Alongside the figures released today, the UK government has made a pledge not to borrow more than £34 billion throughout the entire 2007/08 year, showing a turnaround in government borrowing and national debt.

Whilst July is considered to be a month in which a surplus is common, the figures have been well received by analysts today, who claim they show the government taking steps towards more efficiently handling national borrowing.

With today’s figures surpassing analyst expectations overall, there was still concern as to the growing public sector deficit. From £3.1 billion last year, the public sector current account deficit stood at £4.5 billion over the course of the second quarter this year.

Despite this, the government hopes to remain on target for its minimalist borrowing plan over the course of this tax year.

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