FX.co ★ UK Public Borrowing Rises More Than Forecast

In June 2025, the UK experienced a significant rise in public sector net borrowing, excluding public sector banks, which expanded dramatically to £20.7 billion from £14.1 billion in June of the previous year. This figure surpassed market expectations of £15.6 billion, marking the highest level of borrowing since April 2021. The increase was predominantly driven by a £12.7 billion surge in total public sector spending, largely attributed to a notable £8.4 billion rise in debt interest payments. Concurrently, total receipts increased by £6.1 billion, bolstered by a £2.3 billion uptick in central government tax receipts and a £3.1 billion increase in mandatory social contributions. For the financial year leading up to June, borrowing accumulated to £57.8 billion—£7.5 billion more than the same period in 2024—ranking as the third highest borrowing for April to June on record, following only 2020 and 2021. Finally, it was estimated that the public sector net debt, excluding public sector banks, was 96.3% of GDP at June's end.