The UK Office for National Statistics (ONS) published data today, which revealed that public sector borrowing in the UK remains flat; despite a tax windfall from Switzerland that boosted UK public finances in May this year.
The ONS release disclosed the third estimates of outturn for the 2012/13 public sector finances and the first estimates for May 2013, which will be updated throughout the year as finalised data is received from public sector bodies.
According to ONS, public sector net borrowing, excluding temporary effects of financial interventions (PSNBex), was £85.0bn in 2012/13, down by £33.5bn in comparison to 2011/12 when it was £118.5bn. Figures for May 2013 reveal that public sector net borrowing, excluding temporary effects of financial interventions and also excluding the effects of the transfers from the Bank of England Asset Purchase Facility Fund, was £12.7bn, a drop when compared to public sector net borrowing of £15.6bn in May 2012.
Public sector net borrowing in May 2013, excluding temporary effects of financial interventions (PSNB ex), has also been reduced by £3.9bn from Bank of England’s quantitative easing bond purchases, as well as by £3.2bn from retrospective tax payments due to be paid by Swiss banks. This tax windfall is said to be the result of a deal with Switzerland made in January, whereby UK residents with undeclared Swiss bank accounts will become liable for taxation on their banking deposits held in Swiss banks.