In June, UK government borrowing rose unexpectedly to £20.7 billion, an increase of £6.6 billion from the previous year. The rise was attributed to higher spending on public services and substantial debt interest payments, which exceeded tax revenue increases, including National Insurance. This results in speculation about potential tax increases in the upcoming Budget. Interest payments on government debt reached £16.4 billion in June 2025, nearly double the amount from last year. The year-to-date borrowing is now at £57.8 billion, creating pressure for future fiscal adjustments.
The UK government borrowing rose to £20.7 billion in June, up £6.6 billion from last year, driven by increased debt interest payments.
Higher public spending and debt interest payments outstripped revenue from taxes like National Insurance, raising speculation of potential tax rises.
Interest payments on government debt nearly doubled, reaching £16.4 billion in June 2025 compared to the previous year.
The first three months of the financial year saw borrowing hit £57.8 billion, an increase of £7.5 billion from the same period in 2024.
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