Government borrowing higher than expected in June

British government borrowing increased more than expected last month after a major increase in debt interest payments.

The National Statistics Office (Ones) said that the difference between borrowing – public expenditures and tax revenue was £ 20.7 billion in June and increased by £ 6.6 billion compared to the same month last year.

The British statistical organ said that higher expenditures for public services and debt interest payments have earned income from other taxes, including the national insurance abolished in April.

After the government has to reversed the benefits of saving billions of pounds, it will increase speculation about tax increases in the coming budget after it has to reverse its deductions.

The second highest June borrowing figure since the month of monthly registrations in 1993, Ones was greatly influenced by the pandema behind June 2020.

KPMG UK Senior Economist Dennis Tatarkov said that data “put more pressure on public finances”.

“Furthermore, long -term appearance for public finance continues to be difficult. Latest U -turns on prosperity and permanent growth winds can open a gap against financial objectives that may require more tax increase or expenditure cuts in the autumn budget.”

Ones said that interest payments for government debt rose to £ 16.4 billion in June 2025, which was almost twice the amount paid at the same point last year.

In the first three months of the current fiscal year, borrowing reached £ 57.8 billion with an increase of £ 7.5 billion from the same period in 2024.

“We are determined to difficult financial rules, so we do not borrow for daily expenditures and we do not borrow as a share of our economy.”