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The government provided less than expected in December 2021

Government provided less than expected in December

The government’s analysis was the highest fourth for December according to registration, since the cost of supporting the economy through the pandemic continued. The gap between spending and tax revenues reached £ 16,800 million in December, a little smaller than many economists had predicted. The figure was helped by more timbre taxes and fuel taxes that reinforce treasure chests. However, interest payments jumped greatly due to greater inflation. The National Statistics Office, said interest payments increased to £ 8,100 million last month, a record for the month and a bit of £ 5.40 million of a year before.

The Chancellor Rishi Sunak, under pressure to relax the tax increases planned in April, underlined the impact of the growing reimbursement of debt in a statement after the figures were released. He said: We are supporting the British while we recovered from the pandemic through our plan for work and grants, loans and taxes. Risks for public finances, including inflation, make it even more important that we avoid the burden of future generations with high debt reimbursements. Our fiscal rules mean that we will reduce our debt burden as we will continue investing in the future of the United Kingdom. In total, the Government of the United Kingdom has announced more than 50 schemes and returned to nations to support individuals and companies during the Coronavirus pandemic.

The consensus among economists was that December loans would reach around £ 18.5bn. Although Mr. Sunak has not given any sign, he will be tilted at the pressure to discard the increase, Capital Economics said that the figures of December suggest that it would have enough fiscal space to cancel the Ni Rise without too much damage to the nations finance.