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UK economic data, borrowing and hiring signals highlight fragile outlook

June public sector net borrowing came in at £16.0bn, and job vacancies fell to 712,000, underscoring a cautious hiring environment.

Reported · Written up by our desk · Europe

The UK government borrowed less than expected in June, data from the Office for National Statistics showed, with public sector net borrowing at £16.0bn, £7.9bn lower than in June 2025.

Official figures also showed job vacancies fell to 712,000, nearly half the level seen in 2022, as employers held off on new hiring over the three months to May, pointing to a “fragile” outlook amid the conflict in the Middle East.

Separate data indicated unemployment stayed at 4.9% in May, matching April, while defence stocks moved higher after Andy Burnham appointed John Healey as chancellor, with Babcock up as much as 7%, BAE Systems up about 3%, and Rolls-Royce up nearly 2% on the FTSE 100.

In corporate developments, a consortium of investors pursuing a rescue bid for Thames Water offered the government a “golden share” in a bid to prevent nationalisation. London & Valley Water, which holds £17bn of Thames Water’s £21bn debt, said it is working on a revised rescue package that would give the government a veto over major decisions and potential hostile takeovers, according to Guardian Economics.

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