Public Sector Borrowing £3 Billion More Than Expected
The government borrowed £2.9 billion more than expected last month, a blow to Labour’s Rachel Reeves as she prepares her first budget. According to the Office for National Statistics, the government borrowed £14.5 billion in June, £3.2 billion less than last year, though well above the £11.6 billion the Office for Budget Responsibility predicted. No surprise that the quango got it wrong again…
Meanwhile, the government has borrowed £49.8 billion since the fiscal year began. Though the UK is at the top of the G7 growth table for the first quarter (GDP growth was 0.7%), the debt-to-GDP ratio hit 99.5% in June. Labour are inclined to raise taxes, overshooting OBR forecasts will only spur them on…