UK borrowings totalled £18.5bn in June as the government again spent more than it earned in taxes and other income.
Although this was a slight improvement of £0.4bn compared to June 2022, it marked the third-highest June borrowing since records began in 1993, following the peaks in June 2020 and 2022.
The increase in central government tax receipts and a significant reduction in debt interest payments from the previous year were partially offset by higher costs driven by inflation and the escalating cost of living.
Public sector net borrowing (excluding public sector banks) was £18.5 billion.
This is £0.4 billion less than in June 2022 and the third-highest June borrowing since monthly records began in 1993.
— Office for National Statistics (ONS) (@ONS) July 21, 2023
These expenses included energy support schemes introduced in October 2022 and increased benefit payments.
As of the end of June 2023, public sector net debt stood at £2.6tn, representing around 100.8% of the UK's annual gross domestic product (GDP), a level not seen since the early 1960s.