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UK public sector borrowing misses June forecasts by 7.9 billion

Public sector net borrowing totaled £16bn in June, about £300m below an Office for Budget Responsibility forecast, helped by lower inflation linked debt interest costs.

Reported · Written up by our desk · Europe

The UK government borrowed less than expected in June, with public sector net borrowing coming in at £16bn, according to data from the Office for National Statistics.

The ONS said that figure was £7.9bn lower than in June 2025 and about £300m less than the forecast from the Office for Budget Responsibility. The gap was largely attributed to lower inflation linked debt interest costs.

Guardian Economics reports that the result comes as the UK faces rising borrowing costs amid jitters in global bond markets and uncertainty around the new prime minister’s tax and spending plans.

The latest borrowing snapshot also coincided with moves to support household costs of living, including a plan announced by Andy Burnham to remove VAT from domestic electricity bills from 1 October, with chancellor John Healey saying the measure would be funded this year by cancelling the digital ID programme.

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