Office for Budget Responsibility -
Some initial effects of the unfolding Covid-19 outbreak shock to the public finances are visible in the March cash data. Receipts fell sharply – particularly VAT, where payments have been deferred. Spending increased, in part due to the cost of business support measures. These effects have yet to feed through to the headline accruals measure of the budget deficit or to central government cash borrowing, which was temporarily cushioned by other factors.