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Brexit caused sharp rise in public borrowing in September

Brexit caused sharp rise in public borrowing in September

Brexit has a great impact on the financial habits of Britons. The referendum caused a sharp rise in public borrowing in September, say financial organisations. It looks like an increase in government spending outstripped disappointingly weak growth in tax revenues.

Brexit and financial situation in the Great Britain are linked too tight. Unsurprisingly, that public sector borrowing in the month came in at £10.6bn, up from £9.3bn in the same month last year, according to the Office for National Statistics. Another example is the city of London, its analysts had expected borrowing to decline to £8.5bn. According to Howard Archer of IHS Global Insight:

“While the economy has shown overall resilience following June’s Brexit vote, there clearly has been some slowdown in activity which is impacting on tax receipts.”

 

Philip Hammond in his recent statement said that the government has already made significant progress. In fact, it’s obviously in bringing the public finances under control. Still, the government has a lot to do with Brexit consequences, this important work is in progress, added Mr Hammond.