UK Forecast in detail

On the face of it, recent public sector net borrowing numbers suggest that the Government's deficit reduction ambitions are stalling, with borrowing higher than last year despite a more favourable economic backdrop. But the underlying picture is less gloomy, with the recent disappointing numbers largely due to the comparison with the early part of fiscal year 2013–14, when revenues had been temporarily boosted by receipts from the Swiss Capital Tax and by high earners deferring income from the previous tax year to take advantage of the reduction in the top rate of income tax…