Latest news with #OfficeforBudgetResponsibility
The Sun
13 hours ago
- Business
- The Sun
Tax hikes put UK budget deficit on track against official forecasts
LONDON: An influx of taxes paid by businesses put Britain's budget deficit on track to meet official forecasts at the start of the 2025/26 financial year, welcome news for finance minister Rachel Reeves as she seeks to repair the public finances. Official data on Friday showed public sector borrowing for May was 17.686 billion pounds ($24 billion). While a Reuters poll of economists showed a median forecast of 17.1 billion pounds, the government has borrowed 37.7 billion pounds over the first two months of 2025/26 - less than the 40.7 billion pounds the Office for Budget Responsibility had predicted. Reeves' budget plans hinge on a tiny buffer against the government's self-imposed fiscal rules - equivalent to less than 1% of annual spending - meaning they are vulnerable to even small shifts in the economic outlook. While she is likely to take heart from Friday's data, Reeves' budget plans could yet be knocked off course by conflict in the Middle East and surging oil prices, weak business confidence in the wake of tax hikes, and global trade wars. The Bank of England said on Thursday the underlying pace of economic growth was weak. Separate data from the Office for National Statistics showed British retail sales volumes recorded their sharpest drop since December 2023 last month. 'Borrowing was slightly better than expected in the first two months of the financial year, making the indicator a lonely amber light among the many red lights that are flashing with increasing rapidity on the government's economic and fiscal dashboard,' said Alison Ring, director of public sector and taxation at accountancy body ICAEW. EARLY INDICATIONS Friday's figures from the ONS provided an early indication of the impact of a significant increase in employer social security payments - known in Britain as National Insurance Contributions - which took effect in April and are paid a month in arrears. A major source of funding for the Labour government's spending plans, the ONS said compulsory social security contributions in April and May combined were 30.2 billion pounds - a little less than the Office for Budget Responsibility predicted but still a record in cash terms. Compared with the same period in 2024, social security contributions were up 17.5% - the biggest such rise in three years. An ONS statistician warned that next month's data was likely to show a 'very high' debt interest payment, reflecting an increase in the gauge of inflation that underpins the compensation paid on index-linked government bonds. The British government bond market has become increasingly volatile in recent years, reflecting unease among investors over Britain's mix of slow economic growth, high debt interest costs and persistent inflation. Last week Reeves set out a multi-year spending review which divided up more than 2 trillion pounds of public spending between government departments. ($1 = 0.7447 pounds)
The Sun
14 hours ago
- Business
- The Sun
UK budget deficit eases as tax inflows boost fiscal outlook
LONDON: An influx of taxes paid by businesses put Britain's budget deficit on track to meet official forecasts at the start of the 2025/26 financial year, welcome news for finance minister Rachel Reeves as she seeks to repair the public finances. Official data on Friday showed public sector borrowing for May was 17.686 billion pounds ($24 billion). While a Reuters poll of economists showed a median forecast of 17.1 billion pounds, the government has borrowed 37.7 billion pounds over the first two months of 2025/26 - less than the 40.7 billion pounds the Office for Budget Responsibility had predicted. Reeves' budget plans hinge on a tiny buffer against the government's self-imposed fiscal rules - equivalent to less than 1% of annual spending - meaning they are vulnerable to even small shifts in the economic outlook. While she is likely to take heart from Friday's data, Reeves' budget plans could yet be knocked off course by conflict in the Middle East and surging oil prices, weak business confidence in the wake of tax hikes, and global trade wars. The Bank of England said on Thursday the underlying pace of economic growth was weak. Separate data from the Office for National Statistics showed British retail sales volumes recorded their sharpest drop since December 2023 last month. 'Borrowing was slightly better than expected in the first two months of the financial year, making the indicator a lonely amber light among the many red lights that are flashing with increasing rapidity on the government's economic and fiscal dashboard,' said Alison Ring, director of public sector and taxation at accountancy body ICAEW. EARLY INDICATIONS Friday's figures from the ONS provided an early indication of the impact of a significant increase in employer social security payments - known in Britain as National Insurance Contributions - which took effect in April and are paid a month in arrears. A major source of funding for the Labour government's spending plans, the ONS said compulsory social security contributions in April and May combined were 30.2 billion pounds - a little less than the Office for Budget Responsibility predicted but still a record in cash terms. Compared with the same period in 2024, social security contributions were up 17.5% - the biggest such rise in three years. An ONS statistician warned that next month's data was likely to show a 'very high' debt interest payment, reflecting an increase in the gauge of inflation that underpins the compensation paid on index-linked government bonds. The British government bond market has become increasingly volatile in recent years, reflecting unease among investors over Britain's mix of slow economic growth, high debt interest costs and persistent inflation. Last week Reeves set out a multi-year spending review which divided up more than 2 trillion pounds of public spending between government departments. ($1 = 0.7447 pounds)
Economic Times
14 hours ago
- Business
- Economic Times
Tax hikes put UK budget deficit on track against official forecasts
UK's budget deficit is slightly below forecasts due to a surge in business taxes, offering some relief to Finance Minister Rachel Reeves. While borrowing in the initial months of 2025/26 is less than predicted, economic uncertainties like Middle East conflicts and trade wars still pose significant risks. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads An influx of taxes paid by businesses put Britain's budget deficit on track to meet official forecasts at the start of the 2025/26 financial year, welcome news for finance minister Rachel Reeves as she seeks to repair the public data on Friday showed public sector borrowing for May was 17.686 billion pounds ($24 billion).While a Reuters poll of economists showed a median forecast of 17.1 billion pounds, the government has borrowed 37.7 billion pounds over the first two months of 2025/26 - less than the 40.7 billion pounds the Office for Budget Responsibility had budget plans hinge on a tiny buffer against the government's self-imposed fiscal rules - equivalent to less than 1% of annual spending - meaning they are vulnerable to even small shifts in the economic she is likely to take heart from Friday's data, Reeves' budget plans could yet be knocked off course by conflict in the Middle East and surging oil prices, weak business confidence in the wake of tax hikes, and global trade Bank of England said on Thursday the underlying pace of economic growth was weak. Separate data from the Office for National Statistics showed British retail sales volumes recorded their sharpest drop since December 2023 last month."Borrowing was slightly better than expected in the first two months of the financial year, making the indicator a lonely amber light among the many red lights that are flashing with increasing rapidity on the government's economic and fiscal dashboard," said Alison Ring, director of public sector and taxation at accountancy body INDICATIONSFriday's figures from the ONS provided an early indication of the impact of a significant increase in employer social security payments - known in Britain as National Insurance Contributions - which took effect in April and are paid a month in arrears.A major source of funding for the Labour government's spending plans, the ONS said compulsory social security contributions in April and May combined were 30.2 billion pounds - a little less than the Office for Budget Responsibility predicted but still a record in cash with the same period in 2024, social security contributions were up 17.5% - the biggest such rise in three ONS statistician warned that next month's data was likely to show a "very high" debt interest payment, reflecting an increase in the gauge of inflation that underpins the compensation paid on index-linked government British government bond market has become increasingly volatile in recent years, reflecting unease among investors over Britain's mix of slow economic growth, high debt interest costs and persistent week Reeves set out a multi-year spending review which divided up more than 2 trillion pounds of public spending between government departments.
Daily Record
14 hours ago
- Health
- Daily Record
Over 400,000 people on PIP set to lose daily living payments due to new DWP reforms
The OBR now estimates 430,000 PIP claimants will lose their award between November 2026 and 2030. New estimates from the Office for Budget Responsibility (OBR) indicate that 1.64 million people currently claiming Personal Independence Payment (PIP) will have an award review between November 2026 and March 2030. Of these, it expects roughly a quarter (430,000) will lose their daily living award as a result of the tightened eligibility criteria, proposed by the Department for Work and Pensions (DWP). New and existing claimants will need to score at four points in at least one of the 10 daily living categories - along with the requisite number of overall points from others - to qualify for PIP. The average loss to those claimants would be £4,500 each year, under the current PIP payment rates. MPs will debate the Universal Credit and Personal Independence Payment Bill on July 1, when it receives its second reading in the House of Commons. However, concerns and questions are expected to be raised on Monday when Work and Pensions Secretary Liz Kendall and her senior ministerial team attend the scheduled oral questions session in Parliament. The DWP has now conducted analysis of PIP claimants who did not score four points in at least one daily living activity in 18 of the most common disabling conditions. These conditions have been chosen as they make up the highest proportions of PIP caseloads. The DWP has now conducted analysis of PIP claimants who did not score four points in at least one daily living activity in 18 of the most common disabling conditions. These conditions have been chosen as they make up the highest proportions of PIP caseloads. Minister for Social Security and Disability Sir Stephen Timms, recently shared the analysis findings in a written response to Liberal Democrat MP Victoria Collins. Sir Stephen said: 'A breakdown of the impact of the reforms on disability overall has been published as part of an Equality Analysis of the Spring Statement package of measures 'Data on the health conditions of Universal Credit claimants being placed in the LCWRA has been published and will continue to be taken into account in the future programme of analysis.' The DWP Minister continued: 'Analysis of those who do not score four points in at least one daily living activity for Personal Independence Payment (PIP) has now been undertaken.' He added that the table of findings 'shows the volume of claimants with the 18 most common disabling conditions in receipt of the PIP daily living component in January 2025, as well as the volume and proportion of these claimants who were awarded less than four points in all 10 daily living activities.' DWP analysis of current daily living awards DWP notes on the analysis state that the health condition category is based on primary health condition as recorded on the PIP Computer System at time of latest assessment. Many claimants have multiple health conditions but only primary condition is available for analysis. The list below shows PIP health conditions, the number of comments in receipt of PIP daily living component and the number of claimants awarded less than four points in all daily living activities at the end of January 2025. Back Pain - 194,000 claimants, 154,000 (79%) scored less than 4 points Arthritis - 279,000 claimants, 13,000 (6%) scored less than 4 points Other Regional Musculoskeletal Diseases - 136,000 claimants, 97,000 (71%) scored less than 4 points Chronic Pain Syndromes - 173,00 claimants, 97,000 (71%) scored less than 4 points Cardiovascular Diseases - 61,000 claimants, 38,000 (62%) scored less than 4 points Respiratory Diseases - 83,000 claimants, 45,000 (55%) scored less than 4 points Multiple Sclerosis and Neuropathic Diseases - 80,000 claimants, 38,000 (48%) scored less than 4 points All Other Conditions - 272,000 claimants, 126,000 (46%) scored less than 4 points Other Neurological Diseases - 97,000 claimants,35,000 (36%) scored less than 4 points Cerebrovascular Diseases - 56,000 claimants, 19,000 (34%) scored less than 4 points Cancer - 70,000 claimants, 23,000 (33%) scored less than 4 points Epilepsy - 36,000 claimants, 11,000 (30%) scored less than 4 points Other Psychiatric Disorders - 90,000 claimants, 25,000 (28%) scored less than 4 points Cerebral Palsy and Neurological Muscular Diseases - 47,000 claimants, 11,000 (24%) scored less than 4 points Psychotic Disorders - 112,000 claimants, 26,000 (23%) scored less than 4 points ADHD / ADD - 75,000 claimants, 14,000 (19%) scored less than 4 points Autistic Spectrum Disorders - 206,000 claimants, 13,000 (6%) scored less than 4 points Learning Disabilities - 188,000claimants, 7,000 (3%) scored less than 4 points Other disabling condition groups which cover smaller proportions of the PIP caseload are covered in the 'Other Conditions' category. This includes: Visual Diseases Other General Musculoskeletal Diseases Endocrine Diseases Hearing Disorders Gastrointestinal Diseases Genitourinary Diseases Skin Diseases Autoimmune Diseases (Connective Tissue Disorders) Infectious Diseases Diseases of the Liver, Gallbladder or Biliary Tract Haematological Diseases Metabolic Diseases Multisystem and Extremes of Age Diseases of the Immune System Anxiety and Depression Anxiety disorders - Other / type not known Post traumatic stress disorder (PTSD) Stress reaction disorders - Other / type not known Generalised anxiety disorder Phobia - Specific Phobia - Social Agoraphobia Panic disorder Obsessive compulsive disorder (OCD) Anxiety and depressive disorders - mixed Conversion disorder (hysteria) Body dysmorphic disorder (BDD) Dissociative disorders - Other / type not known Somatoform disorders - Other / type not known Depressive disorder Bipolar affective disorder (Hypomania / Mania) Mood disorders - Other / type not known Daily living component for PIP You might get the daily living component of PIP if you need help with: eating, drinking or preparing food washing, bathing, using the toilet, managing incontinence dressing and undressing talking, listening, reading and understanding managing your medicines or treatments making decisions about money mixing with other people How difficulty with tasks is assessed The DWP will assess how difficult you find daily living and mobility tasks. For each task, the DWP will look at: whether you can do it safely how long it takes you how often your condition affects this activity whether you need help to do it, from a person or using extra equipment The descriptors Your ability to carry out each activity is measured against a list of standard statements describing what you can or cannot do. These are known as the descriptors. The health professional will advise the DWP which descriptor applies to you for each activity. The Citizen's Advice website has a whole section dedicated to this along with a downloadable guide to all the points awarded for each response - you can view this here. An example they use is there are six descriptors for 'Dressing and undressing', ranging from 'Can dress and undress unaided' to 'Cannot dress or undress at all'. Each descriptor carries a points score ranging from 0 to 12. Using aids or appliances Your ability to carry out the daily living activities and the mobility activities will be assessed as if you were wearing or using any aids or appliances it would be reasonable for you to use. This applies whether or not you normally use those aids or appliances. However, if you use or need aids and appliances, this can help you to score more points - find out more here. Citizens Advice explains: 'An aid is any item which improves, provides or replaces impaired physical or mental function. It doesn't have to be specially designed as a disability aid. Examples include a stool you need to sit on when cooking, or a walking stick to help you stand.' Daily living scores Citizens Advice explains to get the daily living component of PIP, you must have a physical or mental condition that limits your ability to carry out some or all of the activities below. The maximum amount of PIP points that can be awarded for that question are shown. Daily living activity: Preparing food - 8 Taking medication - 10 Managing therapy or monitoring a health condition - 8 Washing and bathing - 8 Managing toilet needs or incontinence - 8 Dressing and undressing - 8 Communicating verbally - 12 Reading and understanding symbols and words - 8 Engaging with other people face to face - 8 Making budgeting decisions - 6 Points and payment rates After answering all the daily living activity questions: If you get between 8 and 11 points in total - you will be awarded the standard rate of PIP If you get at least 12 points in total - you will be awarded the enhanced rate of PIP After answering all the mobility activity questions: If you get between 8 and 11 points in total - you will be awarded the standard rate of PIP If you get at least 12 points in total - you will be awarded the enhanced rate of PIP The latest DWP figures show that at the end of April there were more than 3.7 million PIP claimants across England and Wales. Work and Pensions Secretary Liz Kendall has previously said more than 1,000 PIP claims are being awarded per day, making the argument for welfare reforms to ensure the system is sustainable for the future. The proposed changes will come into force in November 2026, subject to parliamentary approval. Reforms also include increasing the number of face-to-face assessments. At present, most are being conducted remotely over the phone, by video call, or paper-based. However, there will be no freeze on PIP payments, which will continue to be non-means-tested, and rise in-line with the September inflation rate. There will be no changes to the mobility component. You can complete the UK Government's consultation on proposed changes to PIP and the benefits system until 11.59pm on June 30, on here.
Zawya
16 hours ago
- Business
- Zawya
UK budget deficit undershoots against official expectations
LONDON - Britain's government borrowed less over the first two months of the 2025/26 financial year than official budget forecasters had expected, helped by an influx of taxes paid by businesses after a recent hike in social security contributions. Official data on Friday showed public sector borrowing for May stood at 17.686 billion pounds ($23.84 billion) in May. While a Reuters poll of economists showed a median forecast of 17.1 billion pounds, the government has borrowed 37.7 billion pounds over the first two months of 2025/26 - less than the 40.7 billion pounds the Office for Budget Responsibility had predicted. Friday's figures from the Office for National Statistics provided an early indication of the impact of a significant increase in employer social security payments - known in Britain as National Insurance contributions (NICs) - which took effect in April and are paid a month in arrears. A major source of funding for the Labour government's spending plans, the ONS said compulsory social security contributions in April and May combined were 30.2 billion pounds - a little less than the Office for Budget Responsibility predicted but still a record in cash terms. Compared with the same period in 2024, social security contributions were up 17.5% - the biggest such rise in three years. ($1 = 0.7447 pounds) (Reporting by Andy Bruce; editing by William James)
