Britain has recorded its biggest surplus budget in the month of July. Philip Hammond, the finance minister rejoiced on finding this crucial information that will help him to prepare for the annual budget statement.
It is the UK’s biggest surplus that has been recorded in the last 18 years as the official data showed on last Tuesday. The surplus stood about 2 billion pounds, which is more than double the figure recorded in July of the last year.
The improvement is due to the strong inflows of the income tax receipts. The government now has planned to fix the public finances while the Prime Minister, Theresa May has already announced to put a relaxation on public sector pay and spend more money on the health services.
The economy has not been weakened as much as the forecasters predicted due to the impact of Brexit in 2016. Britain’s public finances stood intact against all odds.
In the year 2010, the former finance minister, George Osborne inherited a deficit to 10 percent of the gross domestic product. The figure now stands around 2 percent of GDP with the deficits of many other countries.
After the biggest surplus, Hammond still wants to work in the area to bring down figures of Britain’s high debt. The debt amount rises to 1.585 trillion pounds as the ONS said. While his first priority is to fix public finances and has to announce in the month of November, more spending in the budget of many areas in public spending after years of cuts in actual terms.
The records showed that income tax revenues rose up to 6 percent in the financial year while other corporative revenues rose by 2 percent in the first four months. Whereas the government’s spending rose by only 1 percent.