UK government borrowed lower than forecast in July in boost for Rachel Reeves

Confirmed by the National Statistics Office, this figure points to the sum of the lowest July borrowing in three years and represents a decrease of £ 2.3 billion compared to the same month of the previous year.

The improved performance was largely attributed to the increase in tax receipts with the increase in self -assessing income tax and national insurance payments.

The economists had largely estimated a July borrowing figure of £ 2 billion to a higher extent, which made the real result a positive surprise.

Despite this monthly improvement, cumulative borrowing for the first four months of the financial year is £ 60 billion with an increase of £ 6.7 billion last year.

Rob Doody, Deputy Director of the Ones Public Sector Finance, said: “Borrowing this July fell $ 2.3 billion in the same month of the same month and was the lowest July figure for three years.

“This reflects strong increases in tax and national insurance receipts.

“However, in the first four months of the financial year as a whole, borrowing was 6 billion higher than the same period in 2024.”

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The figures showed that the amount of money brought by the central government receipts – typically by taxes – was £ 100.1 billion for the month and £ 8.8 billion against the same month last year.

This came as compulsory social contributions including national insurance payments after the latest changes in the national insurance contributions (NICS) paid by employers.

In the meantime, the government, self -assessing income tax receipts increased by £ 2.7 billion.

Ones also reported that state expenditures increased to £ 5.3 billion in July in July, and partially partial payments and benefits increases, as well as cost inflation in departments.

The figures come after the warnings that the chancellor may need to increase taxes again in the budget to attach black holes up to £ 51 billion to public finances.

The government reportedly tried to hit the owners of high -valuable houses with the Capital Gain Tax (CGT) when they sell their families to their homes.

Guardian also reported that the government is considering a revision of stamp tax in the purchases of the existing system.

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However, the Labor Party government has restricted Mrs. Reeves ‘options for collecting money by excluding the increasing income tax, employees’ national insurance contributions and VAT.

On Thursday, economists said that the latest data were positive for the chancellor, but did not stop the need for potential tax increases or expenditure cuts.

Pantheon Macroeconomic British economist Elliott Jordan-Doak said: “Chancellor will have to collect taxes in October despite the matching official estimates.

“Big picture continues to be chronically weak in public finances.

“If he wants to fulfill the promise of changing the headline tax rates of the chancellor, we think that he should resort to ‘sin’ and ‘secret’ tax increases, duty increases and pension tax raids to meet the financial rules.”

Treasury Chief Secretary Darren Jones said: uz We invest in our public services and modernize the state to improve the results and reduce costs in the medium term.

“Too much taxpayers are spent on interest payments for the long -standing national debt.

“So we tend to borrow the government throughout the parliament – so working people do not have to keep up with the bill and we can invest in better schools, hospitals and services for working families.”