After a major increase in loan interest payment, the UK government borrowed more than last month.
Loan – The difference between public spending and tax income – was £ 20.7bn in June, from the same month to £ 6.6bn, the office of the National Statistics (ONS) said.
The UK statistics body stated that high spending on public services and loan interest payment left revenue from other taxes including national insurance, which was removed in April.
After the government is forced to reverse its deduction for benefits aimed at saving billions of pounds, there will be speculation of a large-service figure about tax increase in the upcoming budget.
This was the second highest June borrowing figure since the monthly record started in 1993, ONS only added behind June 2020, which was greatly influenced by the epidemic.
Senior economist Denis Tatarkov, senior economist at KPMG UK, stated that data “more pressure on public finance”.
He said: “In addition, a long-term approach to public finance remains difficult. Recently, U-turn on welfare and frequent development headwinds can open a difference against fiscal goals, which may require further cuts or cuts in autumn budget.”
The ONS stated that in June 2025, interest payments on government loans increased to £ 16.4bn, which was almost double the amount paid at the same point last year.
In the first three months of the current financial year, the loan has now reached £ 7.5bn from the same period to £ 57.8bn in 2024.
Treasury’s Chief Secretary Darren Jones said: “We are committed to hard fiscal rules, so we do not borrow for day to day expenses and fall into debt as part of our economy.”
