UK government borrowing hits £1.8bn in July

UK government borrowing rose to £1.8 billion in July, a figure that exceeded expectations from the Office for Budget Responsibility (OBR), which had forecast a £500 million surplus for the month.

Data from the Office for National Statistics (ONS) indicates that spending growth outpaced tax receipts. Increased expenditure included £2 billion more on social benefits compared to the previous year and a £2.5 billion rise in spending on goods and services. While tax receipts, including self-assessed income tax, reached high levels, they were insufficient to offset rising costs.

Total public debt stands at £2.98 trillion, representing 94 percent of gross domestic product (GDP). Year-to-date borrowing has reached £56.7 billion, surpassing the OBR's previous projection of £54.4 billion. These fiscal pressures come as Chancellor John Healey prepares for his first Budget on October 28, amid high borrowing costs and ongoing economic pressures.