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21.08.202606:31:28UTC+00UK Public Sector Borrowing Unexpectedly Rises in July

UK public sector net borrowing (excluding public sector banks) was £1.8 billion in July 2026, up slightly from £1.1 billion in the same month a year earlier and contrary to market expectations for no change. Public sector spending rose by £5.6 billion year-on-year to £115.3 billion, while receipts increased by £4.8 billion to £113.5 billion.

Borrowing in the financial year to July 2026 reached £56.7 billion, which is £6.0 billion (9.6%) lower than in the same period a year earlier but £2.3 billion above the OBR’s forecast. This was the 12th-lowest April-to-July borrowing total since comparable monthly records began in 1993.

Public sector net debt stood at 94.1% of GDP, 0.8 percentage points lower than a year earlier but still at its highest level since the early 1960s.

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