2025.08.2106:22:59UTC+00UK Public Borrowing Lower than Expected

In July 2025, the UK's public sector net borrowing, excluding public sector banks, fell to £1.1 billion from £3.4 billion in July of the previous year. This figure was notably lower than the market's forecast of £2.6 billion. The overall public sector expenditure rose by £6.9 billion. Despite this increase, the effect of inflation on debt interest payable during the month was minimal, especially given the substantial rise experienced in the previous month. On the revenue side, total receipts saw an increase of £9.2 billion, significantly driven by self-assessed income tax payments. Revenue from central government tax and National Insurance contributions was estimated to have climbed by £8.7 billion. For the fiscal year up to July, borrowing amounted to £60 billion, which is £6.7 billion higher than the same period in 2024. This represents the third-highest borrowing from April to July on record, surpassed only by 2020 and 2021. By the end of July, public sector net debt, excluding public sector banks, equated to 96.1% of GDP.