UK government faces wildest shortfall in funding since 2012

The Conservative government of UK has experienced its wildest shortfall in funding since 2012.

The Office for National Statistics (ONS) said a fall in income tax receipt sent UK’s deficit spiraling to £12.1 bn in August.

The situation will put pressure on Chancellor of the Exchequer George Osborne ahead of tough expenditure decisions in November.

Analysts say a fall in self-assessment receipts was behind much of the fall in the Treasury’s tax income after a bumper month of self-employed payments in July.

The ONS said however this changing pattern of payments by the self-employed was unexpected as August usually enjoys a large spillover of tax receipts from the previous month.


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