UK BORROWING HITS £20.7BN IN JUNE – Surge in debt interest and public spending outpaces tax income
The UK government’s borrowing has soared to its second-highest level on record for the month of June, driven largely by a sharp rise in debt interest payments.
According to the Office for National Statistics, the government borrowed £20.684 billion last month—exceeding economists’ expectations by nearly £4 billion. It’s the steepest June borrowing figure since the COVID-19 crisis in 2020, when emergency spending and furlough schemes pushed borrowing to historic highs. Despite increases in income tax and national insurance contributions, rising costs for public services and soaring interest on existing government debt outpaced revenues, widening the gap between income and expenditure.
Compared to June last year, borrowing was more than £6 billion higher—underscoring the pressure on public finances as the government grapples with stagnant economic growth and persistent inflation.
Economists say the figures could limit the Labour government’s fiscal flexibility as it seeks to invest in public services while keeping borrowing under control.
