Stronger UK Tax Receipts Push July Deficit to Three-Year Low

The UK’s budget deficit shrank more than expected in July as a deadline for paying self-assessed income tax boosted Treasury coffers, bringing temporary relief for Chancellor of the Exchequer Rachel Reeves.

Spending exceeded revenue by £1.1 billion ($1.5 billion) compared with £3.4 billion a year earlier, the Office for National Statistics said Thursday. It was the first year-on-year decline in borrowing since November and the lowest July borrowing for three years. The Office for Budget Responsibility had forecast a £2.1 billion deficit.