Monday, February 20, 2006
Strong public finances = no tax hikes
Posted by David Smith at 10:00 AM
Category: Thoughts and responses

It looks as though Gordon Brown has got away with it. The public finances for January, just released, were healthy. Here's the release - the highlights were a £15.3 billion current budget surplus in January, £3 billion better than last year, and a net repayment of £12.6 billion, up from £8.8 billion on a year ago. High oil prices are doing somebody some good.


But what I'd like to understand is how much of this 'good' new is due to the changes in the taxation cycle for oil companies.

Posted by: Maciej Kudanowski at February 20, 2006 08:01 PM

Here's a partial answer, from the Institute for Fiscal Studies:

"Corporation tax receipts in January 2006 were 51.7% higher than in the same month last year. Due to the pattern of these
receipts over the year, January is an important month for corporation tax receipts. Revenues in January 2006 were boosted
by a change in timing for North Sea corporation tax receipts introduced in the March 2005 Budget, although they would
still have been strong in the absence of this tax increase. The December 2005 Pre-Budget Report forecast implies that
these receipts will be 22.8% up on last year’s levels over the whole year, and 31.1% up over the period from November
2005 to March 2006. During the first ten months of 2005–06 these receipts were 25.2% higher than those for the same
months in 2004–05, while receipts for November 2005 to January 2006 were 41.0% higher than the same three months last

Posted by: David Smith at February 20, 2006 10:27 PM
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