Some initial effects of the unfolding coronavirus shock to the public finances are visible in the March cash data. Receipts fell sharply – particularly VAT, where payments have been deferred. Spending increased, in part due to the cost of business support measures. These effects have yet to feed through to the headline accruals measure of the budget deficit or to central government cash borrowing, which was temporarily cushioned by other factors.
Latest news
March HMRC cash receipts fall 5 per cent on last year
April 23rd, 2020 | What's new, Monthly public finances release
Some initial effects of the unfolding coronavirus shock to the public finances are visible in the March cash data. Receipts fell sharply – particularly VAT, where payments have been deferred. Spending increased, in part due to the cost of business support measures. These effects have yet to feed through to the headline accruals measure of the budget deficit or to central government cash borrowing, which was temporarily cushioned by other factors.