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UK public sector borrowing was higher than expected in June, according to official statistics that will be closely watched by new chancellor Rachel Reeves ahead of the Budget in the autumn.
Borrowing — the difference between public sector spending and income — was £14.5bn in June. That was £3.2bn less than in June 2023, but higher than the £11.6bn forecast by the Office for Budget Responsibility, the Office for National Statistics said on Friday.
Interest payable on central government debt was £7.4bn in June, £5.5bn less than in the same month last year, largely because the interest payable on index-linked gilts rises and falls with inflation.
Public debt, or borrowing accumulated over time, was 99.5 per cent of GDP, remaining at levels last seen in the early 1960s, reflecting higher spending during the pandemic and highlighting the challenges faced by the new chancellor.
Darren Jones, chief secretary to the Treasury, said: “Today’s figures are a clear reminder that this government has inherited the worst economic circumstances since the second world war, but we’re wasting no time to fix it.
“Fixing the economy’s foundations and restoring stability is the only way we can create growth and put more money back into people’s pockets across the country.”
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