Hammond: UK could escape budget deficit by mid-2020s

Wednesday, 24. April 2019 11:34

The United Kingdom will most likely be able to run a balanced budget by the mid-2020s, Chancellor of the Exchequer Philip Hammond told MPs on Wednesday. However, running a balanced budget is a choice and not a must, he added.

Hammond stressed the government is on track to fulfill its long-term budget targets and that there are options on the table which is a "very good place to be" at. Speaking to the Treasury Committee, the chancellor also noted that the UK's aging population is causing a need for higher taxes. However, he pointed out that with tax revenues of 34.6% of its gross domestic product, the UK is below the average of the Organization for Economic Co-operation and Development (OECD) countries.

Earlier, UK data showed the country's budget deficit hit a 17-year low as the country borrowed £24.7 billion to balance its books in the period from April 2018 to March 2019.

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