UK public finances show cracks as inflation pinches consumers

Bloomberg

Britain kept to its borrowing forecasts in a pre-election boost for Chancellor of the Exchequer Philip Hammond but cracks in the public finances are appearing as consumers feel the pain from inflation.
The deficit narrowed to 52 billion pounds ($66.6 billion) in the fiscal year through March, in line with the 51.7 billion pounds forecast by budget officials last month. The shortfall in March alone widened to 5.1 billion pounds, higher than estimated, the data from the Office for National Statistics showed on Tuesday.
The figures allow Hammond to claim that his deficit-cutting plans remain on track as Britain prepares for a snap general election on June 8. The budget gap stood at a nine-year low of 2.6 percent of GDP in the latest fiscal year, down from almost 10 percent in the aftermath of the financial crisis.
Yet much of the improvement was due to factors that are not expected to be repeated, including an estimated 4 billion-pound dividend-tax windfall.