UK public sector net borrowing unexpectedly rises to £1.8 billion in July

(1) The UK’s net public sector borrowing (excluding public sector banks) in July was 1.8 billion pounds, higher than 1.1 billion pounds in the same period last year, while the market had expected zero change. Public sector expenditure increased year-on-year by 560 million pounds to 115.3 billion pounds, and revenue rose by 480 million pounds to 113.5 billion pounds. (2) The cumulative borrowing for the current fiscal year up to July totaled 56.7 billion pounds, down by 6 billion pounds (a decrease of 9.6%) compared to the same period last year, but 2.3 billion pounds higher than the forecast by the Office for Budget Responsibility. This figure is the twelfth lowest for total borrowing from April to July since comparable monthly records began in 1993. (3) Public sector net debt as a proportion of GDP was 94.1%, down by 0.8 percentage points compared to the same period last year, marking the highest level since the early 1960s.