their tax returns. andrew wishart is a uk economist for capital economics1. why is the surplus sinking2. july is a month were we always see a july is a month were we always see a surplus but the fact that it is smaller than last year shows what we have seen across the first four months is that although tax returns are months is that although tax returns a re pretty months is that although tax returns are pretty good, pushed up by strong employment and wage growth, government spending is rising even faster than that and that is a result of the spending on the nhs announced last year. perhaps also some spending by the government on their preparations for brexit. as brexit making the government take its eye off the ball and it comes to raining in public spending? its eye off the ball and it comes to raining in public spending7m its eye off the ball and it comes to raining in public spending? it is more of a change of emphasis over the past decade, austerity has been the past decade, austerity has been the big theme and government spending fell for six years from 2012 to just 1% of gdp whic