UK records larger-than-expected July deficit as Healey prepares budget
Official figures showed the government borrowed more than forecast in July, adding pressure on John Healey before his first budget.
The UK government borrowed £1.8bn in July, more than economists had expected, according to official figures released on Friday as Chancellor John Healey prepares his first budget. The data adds to the fiscal challenge facing the Treasury ahead of the autumn statement.
July is usually a stronger month for the public finances because self-assessment tax payments boost receipts, but the latest numbers showed a shortfall instead. Analysts had broadly expected borrowing to be close to zero for the month.
The figures also showed public debt at £2.98tn, equal to 94% of gross domestic product, up £96bn from a year earlier. Healey has said the government remains committed to meeting its fiscal rules.
The borrowing data will feed into the budget planning process as ministers look for ways to balance spending pressures with the government's fiscal targets.
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