The borrowing in the United Kingdom is more than expected in June to 20.7 billion pounds

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The UK government borrowed higher than expected £ 20.7 billion in June, fueled by the growing debt costs, as Chancellor Rachel Reeves is struggling with weak economic growth and financial bases.

The shortage of government income and Spending 6.6 billion pounds was more than June 2024 and higher than the forecast of 17.1 billion pounds for June this year by the United Kingdom’s Financial Agency.

Tuesday data from the National Statistics Office is likely to increase the expectations of the tax rise in the autumn budget, after the government turns to spend and Welfare discounts.

This was the second highest net borrowing for the month of June since the records began in 1993, after 2020. The number was raised with increased costs of government debt interest to 16.4 billion pounds, in which he said ONS was the second largest batch of this since 1997.

Gilts declined after data, as the performance of other large government debt markets and the payment of the return for 10 years, which is inversely transmitted to the price, an increase of up to 0.05 degrees Celsius to 4.65 percent. It later declined slightly to 4.63 percent.

“We are committed to difficult financial rules, so we do not borrow for daily spending and get debt as a share of our economy,” said Darren Jones, the main secretary of the Treasury.

The work government has little head to meet its pledge to finance daily spending from revenue by 2029-30-a margin that risk reduces when the budget responsibility office publishes, the financial staff, its next forecast for the economy and public resources.

Rob Wood, an economist in the overall economy consulting consulting, estimated that the consultant, which cost 9.9 billion pounds, has become a 13 billion pounds hole, which means that Reeves will need to “raise taxes or reduce spending by a little more than 20 billion pounds in the autumn budget to restore the Hyd Hands margin.”

Although borrowing in the first three months of the fiscal year was in line with the OBR expectations, the current budget shortage, which excludes the net investment and is a reference for the rule of the main financial advisor, excessive projections, which amount to 44.5 billion pounds compared to the estimate of OBR 39.5 billion pounds.

“The high costs of providing public services” and paid payments in government benefits in June have exceeded income increases from taxes and national insurance contributions.

Public sector spending increased by 12.7 billion pounds in June of the same month last year, due to an increase of 8.4 billion pounds in debt interest compared to June 2024. This reflects the movement in the fragmentation price indicators that are related to the benefits due to the index associated.

Public sector receipts rose 6.1 billion pounds in June, and helped an increase of 2.3 billion pounds in the receipts of the central government tax, which rose 2.3 billion pounds, and an increase of 3.1 billion pounds in the receipts of compulsory social contributions.

However, tax receipts were still weaker than OBR, and may reflect weakness in the labor market.

“There is no denial that financial developments have been very disappointing so far in this fiscal year, and Rachel Reeves will definitely achieve the measures of possible revenue.”