"Part of the increase in July's borrowing can be attributed to a fall in corporation tax receipts but, for the most part, the increase in borrowing is because of overall weakness in the domestic economy"
- Nida Ali, economic adviser to the Ernst & Young ITEM Club
U.K. public sector borrowing rose by more than expected in July as corporate tax receipts fell and government spending increased. Public sector net borrowing rose by 557 million pounds to 44.9 billion pounds for the fiscal year started April 1.
"Part of the increase in July's borrowing can be attributed to a fall in corporation tax receipts but, for the most part, the increase in borrowing is because of overall weakness in the domestic economy," said Nida Ali, economic adviser to the Ernst & Young ITEM Club.
U.K. stocks edged higher on Tuesday ahead of Luxembourg Prime Minister Jean-Claude Juncker visit to Greece on Wednesday.
The FTSE 100 Index advanced 0.57 per cent, or 33.15 points to 5,857.52. The broader FTSE All-Share Index climbed 0.58 per cent to 3,045.01.
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