LONDON (Reuters) – The slump in British government tax revenues since the start of the coronavirus lockdown has been slightly less sharp than feared, the Office for Budget Responsibility said on Friday after the release of public finances data for May.
Tax revenues in May were 43% lower than a year earlier in cash terms, mostly due to the government’s deferral of value-added tax bills to help companies preserve cash flow.
The OBR said it would publish a revised borrowing scenario on July 14 incorporating the smaller fall in economic output and tax since its last forecast, and adding extra scenarios showing the potential budget consequences of longer-term economic damage.
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