We are so used to strong Exchequer figures every month that today’s figures look a little disappointing. Of particular concern is lower than expected income tax receipts, coming in at 6.5% below target as well as being behind last year. This could just be a one off blip; it is certainly too early for it to be Brexit related. It also goes against much of the recent positive news in relation to jobs announcements. However coming so close to the October Budget, it is of concern.
Excise duties are also significantly behind target (19.6%) due to weak tobacco receipts.
The Minister will have one more set of monthly numbers to review before the October Budget. Any further dip in tax revenues will clearly frame the Budget 2017 discussions.