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UK borrowing climbs as inflation pushes up debt costs
UNITED KINGDOM, JUL 22 – June borrowing reached £20.7 billion, driven by a £16.4 billion rise in debt interest costs linked to inflation and higher interest rates, marking the second highest June on record.
- Last month, government borrowing jumped to £20.7 billion in the UK, marking the second-highest June borrowing since records began.
- Following rising inflation, interest payments surged, with the Office for National Statistics noting a large rise in Retail Prices Index inflation on index-linked gilts pushed interest payments to £16.4 billion, and costs of public services rose faster than tax and NIC revenues.
- Compared with June last year, borrowing was £6.6 billion higher, while compulsory social contributions rose by £3.1 billion to £17.5 billion.
- Tougher political scrutiny emerged as ONS data showed June borrowing exceeded forecasts, complicating Reeves' goal to balance by 2030.
- Forecasts show debt interest rising to £130 billion, while borrowing rates stand at their highest since the late 1990s.
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Coverage Details
Total News Sources22
Leaning Left5Leaning Right4Center7Last UpdatedBias Distribution44% Center
Bias Distribution
- 44% of the sources are Center
44% Center
L 31%
C 44%
R 25%
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