Higher than June’s forecasts were lending of his government UK, This was a blow to Finance Minister Rachel Ribs, which will boost speculation for possible tax increases to boost public finances.
The borrowing debt increase sent the budget deficit to £ 20.7 billion, the United Kingdom’s National Statistical Statistical Service said on Tuesday (22.7.25), £ 6.6 billion more than just a year ago and more than just a year ago. Bloomberg.
Borrowing in the first three months of the financial year was 57.8 billion pounds, about £ 7.5 billion higher than a year ago and according to the provision made by the budgetary liability service in March. The deficit was billions under the official forecasts in April and May.
The lending level leaves Ribs with a gap that must fill in its autumnal budget. Its budget plans have been affected by a series of recent changes due to the cuts of pounds of billions. There are also fears of degrading official growth forecasts, which leads many economists to warn that higher taxes are inevitable.
Borrowing in June was reinforced by a $ 16.4 billion debt payment, the third highest for any month recorded. The increase of £ 8.4 billion compared to the previous year is due to the increase in inflation in April, which increased the cost of bonds linked to the retail price index, which is a quarter of total debt. However, this phenomenon is expected to be a lump sum, as it reflects a large increase in the consumer price index (RPI) between March and April that has not been repeated since then.
“Things will probably get worse for the finance minister,” said Alex Kerr, UK economist in Capital Economics. “We believe that it will need to raise £ 15-25 billion in the budget later this year, with the highest taxes taking on most of the difficult work.”
The OMS said that the government’s revenue in June continued to be reinforced by the increase in payroll taxes of employers in April. The increase amounted to £ 86.8 billion, £ 5.7 billion more than a year ago. Mandatory social contributions, which reflect the increase in national insurance contributions in April, were £ 48 billion for the first three months of the financial year, £ 7.5 billion higher than last year.
However, it was offset by more than the cost of spending, with public spending in June increasing by £ 12.4 billion to £ 97.1 billion.
Net debt amounted to £ 2.9 trillion, or 96.3% of GDP, in June – about the highest levels since the early 1960s. A broader view of public finances used for the financial rules of the Minister of Finance, known as pure finances, GDP.
The Bank of England’s upcoming decision to tighten it will be a factor that will determine the fiscal prospects. The Ministry of Finance is forced to cover the losses associated with the Bank of England’s bond activities, which amount to tens of billion pounds. There are speculations that it will stop sales of long -term debt after signs of instability in this market section.