Brexit squeeze slowdown shows signs of spreading
The UK’s budget deficit widens on stalling tax revenue and rising interest
London — The Brexit squeeze on British consumers has hurt the government’s finances as well as retailers, according to data on Tuesday, indicating that the economy’s slowdown at the start of 2017 is being felt more broadly. A stalling of sales tax revenue, a barometer of the economy, helped to widen Britain’s budget deficit by more than expected, official data showed on Tuesday. A separate survey showed business confidence among retailers declined at the fastest pace since 2012, which was the previous time Britain flirted with recession. The economy was barely ruffled by the shock vote to leave the EU. But a steady rise in inflation since the referendum in June 2016, combined with weak wage growth, has slowed its momentum in 2017. Official figures due on Thursday are expected to confirm that the pace of growth more than halved in the first three months of 2017, in contrast with strong growth in the eurozone. Tuesday’s data "show the public finances have started to feel the effects o...
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