Government borrowing has significantly soared more than expected last month as debt interest payments increased.
Official figures reveal the cost of public services and interest payments on government debt heightened speedily than the increases in income tax and national insurance contributions.
This indicates government borrowing has hit the second-highest level in June since records began in 1993, according to data from the Office for National Statistics (ONS).
According to Sky News:
June’s borrowing figures – £20.684bn – were second only to the highs seen in the early days of the COVID-19 pandemic in 2020, when many workers were furloughed.
The figure was a surprise, nearly £4bn higher than anticipated by economists polled by Reuters.
State borrowing – the difference between income from things like taxes and expenditure on the likes of public services – was more than £6bn higher than the same month last year.
This is not good news for Rachel Reeves, UK CHANCELLOR, who has promised to reduce government debt and balance the budget by 2030 as part of her self-imposed fiscal rules.
