US EditionUK 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 payments linked to inflation, marking the second-highest June borrowing since 1993.
- The UK government borrowing rose to £20.7 billion in June 2025, marking the second-highest level since records began in 1993.
- This rise resulted from higher debt interest payments driven by Retail Prices Index inflation and increased costs of providing public services.
- June borrowing was £6.6 billion above last year and exceeded most economists' expectations of £17.6 billion, while compulsory social contributions hit a June record of £17.5 billion.
- Acting ONS chief economist Richard Heys explained that higher expenses for public services combined with a significant increase in interest payments on index-linked gilts led to total spending outpacing the growth in revenue, resulting in a rise in borrowing in June.
- The rising debt costs, now over £100 billion annually and forecast to reach £130 billion, intensify fiscal pressures, with government borrowing exceeding forecasts and investor demands for higher returns.
Insights by Ground AI
Does this summary seem wrong?
40 Articles
40 Articles
UK government borrowing in June £3.5 billion more than expected
Today, we learnt the government borrowed nearly £21 billion in June, up sharply on the same month a year ago and £3.5 billion more than economists were expecting. The over shoot has added to speculation that the Chancellor will have to raise taxes this Autumn.
·London, United Kingdom
Read Full Article
Coverage Details
Total News Sources40
Leaning Left7Leaning Right4Center7Last UpdatedBias Distribution39% Left, 39% Center
Bias Distribution
- 39% of the sources lean Left, 39% of the sources are Center
39% Center
L 39%
C 39%
R 22%
Factuality
To view factuality data please Upgrade to Premium
