UK public finances provided mixed news for the Chancellor on Thursday morning, as borrowing came in lower in July than expected at £1.1 billion, though this was largely offset by June borrowing being revised higher.
Public sector net borrowing excluding public sector banks was down from July last year’s figure of £3.4 billion and better than the consensus expectation of £2 billion.
Borrowing in June was revised up to £22.6 billion from £20.7 billion previously, and borrowing in the fiscal year to June was revised to £58.9 billion from £57.8 billion previously.
"Borrowing this July was £2.3 billion down on the same month last year, and was the lowest July figure for three years," says ONS deputy director for public sector finances, Rob Doody.
"This reflects strong increases in tax and National Insurance receipts.
"However, in the first four months of the financial year as a whole, borrowing was over £6 billion higher than in the same period in 2024."