“These numbers reflect a mixed set of results for the first four months of the financial year, as higher self-assessment tax receipts and the end of energy price guarantee support payments led to an improved fiscal situation in July. But debt remains on track to hit £2.7 trillion by the end of the year, up from £1.8 trillion before the pandemic, adding to the scale of the challenge facing the government and taxpayers in repairing the public finances.
“Stubbornly high core inflation and the prospect of further interest rate rises will concern the Chancellor as he bears down on public spending in the hope of freeing up the money he needs to both pay for the state pension triple-lock and find room for pre-election tax cuts.”
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