21.07.202606:33:11UTC+00UK Public Borrowing Lower Than Expected

UK public sector net borrowing (excluding public sector banks) fell to £16.0 billion in June 2026, down by one-third from £23.9 billion in June 2025 and below market expectations of £19.8 billion. Over the financial year to June 2026, public sector net borrowing reached £57.6 billion, £3.7 billion less than in the same period a year earlier but £2.7 billion higher than the OBR’s March forecast. This made it the tenth-highest April–June borrowing figure since comparable records began in 1993.

Central government receipts rose to £95.0 billion, an increase of £5.2 billion from a year earlier, driven by solid growth in income-related taxes and Value Added Tax revenues. At the same time, central government expenditure edged down to £111.4 billion from £112.9 billion, mainly due to a £5.3 billion drop in debt interest payments to £11.8 billion, although this was still the fourth-highest June level on record. Public sector debt remained close to 95% of GDP, near its highest share since the early 1960s.