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Income tax rises for Scots in April - how the changes affect you
Economists have warned Chancellor Rachel Reeves will still need to raise taxes in the Autumn Budget despite lower-than-expected UK Government borrowing last month. Official figures released on Thursday showed that UK state borrowing slowed to £1.1 billion in July, providing some relief for the Chancellor.
The Office for National Statistics (ONS) said the figure, which was £2.3bn less than the same month a year earlier, is the lowest July borrowing figure for three years. It came after a rise in self-assessed income tax and National Insurance payments helped increase tax receipts for the month.
Uk Government borrowing in July was lower than the £2 billion figure predicted by a consensus of economists.