UK govt borrowing surges to £20.7bn in June

(Sharecast News) - UK government borrowed grew more than expected in June as debt interest costs soared, according to official figures published on Tuesday. Borrowing jumped £6.6bn year on year to £20.7bn, well above forecasts of £16.5bn, add more pressure on embattled Finance Minister Rachel Reeves to find cuts in public spending or raise taxes.

It is the second-highest June borrowing since monthly records began in 1993, beaten only by June 2020 amid the height of the Covid-19 pandemic when government spending soared to prop up the economy.

Interest payable on government debt jumped to £16.4bn, a rise of £8.4bn on June 2024 and higher than the £14bn forecast by the Office for Budget Responsibility.

Reporting by Frank Prenesti for Sharecast.com