UK borrowing breached £20bn in June, the second-highest June figures since monthly records began in 1993, following June 2020.
The difference between total public sector spending and income was £20.7bn last month, an increase of £6.6bn on June 2024, according to the latest figures from the Office for National Statistics.
In the financial year to June 2025 borrowing reached £57.8bn, £7.5bn more than in the same three-month period of 2024 and the third-highest April to June borrowing since monthly records began, following 2020 and 2021.
The current budget deficit was £16.3bn in June 2025, up £7.1bn on June 2024 and the third-highest June current budget deficit since monthly records began in 1997, next to 2020 and 2022.
Richard Carter, head of fixed interest research at Quilter Cheviot, said taxes are likely to rise in the absence of spending cuts on the back of the figures.
“The latest UK public sector finances highlight the parlous state of the government’s fiscal position, with some of the highest borrowing on record for June.
“Recent events have shown how hard it is for the government to bring spending down. As we approach the summer recess this is all going to result in additional speculation of what tax rises will be coming down the line given the need to plug the holes. Bond markets are craving some fiscal discipline, so without any spending cuts, taxes will have to rise.”
He added: “This is all going to negatively impact the UK’s growth position. Labour continually speaks about achieving economic growth but if taxes do need to keep rising to cater for an ever-increasing debt, that growth is going to prove elusive.”
