UK Government Borrows £4.3 Billion in July as John Healey Finalises Autumn Budget

The UK government borrowed £4.3 billion in July, significantly surpassing predictions and marking a £2.5 billion rise compared to July of the previous year. This figure, released by the Office for National Statistics, places the total national debt at 98.7% of Gross Domestic Product (GDP).

Chancellor John Healey stated that the government remains 'committed to meeting our fiscal rules' and reducing debt. However, the higher borrowing figures will undoubtedly factor into the economic landscape as Healey prepares to deliver his first Autumn Budget.

The increase in borrowing largely stemmed from a £2.3 billion rise in central government spending, reaching £87.9 billion for the month. Higher interest payments on government debt, influenced by persistent inflation, contributed to this expenditure. Inflation currently stands at 6.8%, well above the Bank of England's 2% target.

Despite the July figures, the Office for Budget Responsibility's March forecast projected total borrowing for the current financial year to be £115.2 billion. The cumulative borrowing for the financial year to date (April to July) now stands at £69.6 billion, £21.2 billion more than the same period last year.