Britain’s public finances suffered a shock setback in September after a collapse in corporation tax receipts to the lowest level since 2009 widened the budget deficit to £10.6bn. City analysts, who had expected an £8.5bn shortfall, warned that the figures were a setback for Philip Hammond as he prepares to boost public spending in his autumn statement next month. The weak September figures took the budget deficit to £45bn for the first six months of the year, down nearly 5% from the same period in 2015.The Office for National Statistics said it could not offer a reason for the dive in corporation tax receipts. National insurance was 7% higher at £59.3bn and income tax rose 2.7% to £78.7bn. These improvements were undermined when the usually strong September corporation tax receipts proved much weaker, limiting the tax take to £21bn in the first half of the year.

Source: The Guardian October 21, 2016 09:19 UTC