World News – GB – UK public finances have plunged into £ 36bn deficit as inflation rises

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The sharp drop in tax revenue and rising spending at Whitehall pushed UK public finances to £ 361 billion deficit in September while inflation stood at 05%, according to the latest official figures

Illustrating the cost of the UK government’s battle against Covid-19, the Office for National Statistics said last month’s spending deficit sent the figure for the first six months of the fiscal year to £ 208 5 billion

This is almost four times the total of the previous year and brought the UK’s overall debt to 1035% of national income, the highest debt-to-GDP ratio since 1960

Rishi Sunak, responding to the numbers, said: “Things would have been a lot worse if we hadn’t acted the way we did to protect millions of livelihoodsâ €”

The Chancellor stressed that, as the economy recovers, « the government will take the necessary steps to ensure the long-term health of public finances »

Consumer price inflation (CPI) rose in September to 05% from 02% after the end of the Treasury restaurant meal program, which reduces the cost of restaurant meals, as well as increased transport costs

Jonathan Athow, a deputy national statistician at the ONS, said: “The official end of the catering program to help saw restaurant prices rise in the restaurant in September, partially offsetting the sharp drop in the august inflation

– Airfares would normally drop considerably at this time due to the end of the school holidays, but with prices moderate this year, as fewer people have traveled abroad, the price drop has been less important

– Meanwhile, as some consumers search for alternatives to public transportation, the demand for used cars has increased, which has seen their prices riseâ € ”

The September inflation figure is used to decide on the annual rise in business rates While retail, leisure and hospitality businesses have been given a one-year leave for professional rates, this is expected to end on March 31, just before the new rate goes into effect on April 1

The September CPI is also used in the calculation of public pensions, although the triple lock rule means that the payment will be the highest figure in the CPI, of income growth for the year up. ‘in July, or 25%

State benefits are also calculated on the September inflation figure, which means that payments will increase 05% next April, which is far less than this year17% increase

Inflation, UK, consumer price index, finance

World news – UK – UK public finances plunged into deficit of £ 36bn as l inflation is increasing



SOURCE: https://www.w24news.com/news/world-news-gb-uk-public-finances-have-plunged-into-36bn-deficit-as-inflation-rises/?remotepost=446004

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