Close Menu
  • Business
  • Black Business
  • SMALL BUSINESS
  • BANK/FRAUD FINANCIAL CRIMES
  • Celebrities
  • CRYPTO
  • DEBT
  • Entrepreneur
  • ESTATE PLANNING
  • FRANCHISE
  • Gossip
  • GLOBAL ECONOMY
  • Music
  • MUTUAL FUNDS
  • Political
  • Pop Culture
  • PERSONAL FINANCE
  • Wall street
  • Privacy Policy
  • Business News Disclaimer
  • Contact Us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Terms and Condition
What's Hot

Cardi B’s Pregnancy Garners Criticism As She Continues Clubbing

Brandy Reveals A Health Scare Shut Down Her Concert Early

Immortal Ohtani Blasts Dodgers to the World Series

Facebook X (Twitter) Instagram
Trending
  • Cardi B’s Pregnancy Garners Criticism As She Continues Clubbing
  • Brandy Reveals A Health Scare Shut Down Her Concert Early
  • Immortal Ohtani Blasts Dodgers to the World Series
  • Ebury chooses Birmingham for third UK office launch
  • Yung Miami’s Daughter Gets Her Own Cosmetics Line
  • Hennessy and Lebron James Launch a New Collector’s V.S.O.P Limited Edition
  • Best Dressed At 2025 Dazzle At The Academy Museum Gala
  • Monica Ends The Boy Is Mine Concert Early As Brandy Rushes Off
Facebook X (Twitter) Instagram YouTube
THE MIRROR OF MEDIA
  • Home
  • Accounting
  • Banking
  • Business
  • Political
  • Crypto
  • Real Estate
  • Ecommerce
  • Entrepreneur
  • Investment
  • More
    • Music
    • Gossip
    • Pop Culture
    • Wall street
    • IPO’S
    • Mortgage/Loans
    • Venture Capitalists/Angel Investors
THE MIRROR OF MEDIA
You are at:Home»Business»UK borrowing lower than forecast in July as tax receipts boost revenues
Business

UK borrowing lower than forecast in July as tax receipts boost revenues

adminBy adminNo Comments3 Mins Read
Facebook Twitter Pinterest Telegram LinkedIn Tumblr Email Reddit
Share
Facebook Twitter LinkedIn Pinterest WhatsApp Email


Government borrowing came in well below expectations in July, offering some short-term relief to chancellor Rachel Reeves as she prepares her autumn budget.

Public sector net borrowing totalled £1.1 billion last month, the Office for National Statistics (ONS) said – less than half the £2.6 billion forecast by economists and below the Office for Budget Responsibility’s (OBR) £2.1 billion projection.

The undershoot was driven by stronger self-assessment receipts and lower debt costs. July is a key month for income tax revenues, and self-assessment payments climbed to £15.5 billion, up £2.7 billion year-on-year. At the same time, debt interest payments stood at £7 billion, £1.5 billion lower than OBR estimates.

Overall, tax receipts rose by £6.1 billion to £77.6 billion, led by income tax and national insurance contributions. Public spending reached £92.1 billion, up £5.3 billion from a year earlier, with state pensions and day-to-day departmental costs continuing to rise alongside inflation.

So far this fiscal year, borrowing has reached £60 billion, broadly in line with the OBR’s forecast of £59.9 billion. However, the underlying budget deficit – a key fiscal rule measure – is running £5.7 billion above projections, intensifying the challenge for Reeves as she looks to balance revenues with spending.

Economists remain divided on the size of the gap. Capital Economics suggests the chancellor may need to plug a shortfall of up to £27 billion after Labour reversed welfare and winter fuel cuts, while the National Institute for Economic and Social Research (NIESR) places the figure closer to £40 billion.

The OBR’s updated projections at the autumn budget will be critical. Analysts expect it to cut long-run productivity estimates and trim assumptions for interest rate reductions, both of which would weigh on the public finances.

Still, July’s data suggests borrowing is broadly tracking expectations. Martin Beck, chief economist at WPI Strategy, said: “A deficit of 4% of GDP isn’t a fiscal crisis, but it is uncomfortably high for an economy close to full employment. Borrowing in line with the OBR’s forecast is one reason to think that talk of a huge black hole in the public finances is overstated.”

Darren Jones, chief secretary to the Treasury, said the government remained focused on bringing borrowing down: “Far too much taxpayer money is spent on interest payments for the longstanding national debt. That’s why we’re driving down borrowing across this parliament so working people don’t have to foot the bill.”

Markets now expect the Bank of England to hold interest rates at 4 per cent for the rest of the year, which could push annual debt servicing costs higher from their current level of around £100 billion.


Jamie Young

Jamie Young

Jamie is Senior Reporter at Business Matters, bringing over a decade of experience in UK SME business reporting.
Jamie holds a degree in Business Administration and regularly participates in industry conferences and workshops.

When not reporting on the latest business developments, Jamie is passionate about mentoring up-and-coming journalists and entrepreneurs to inspire the next generation of business leaders.





Source link

Share. Facebook Twitter Pinterest LinkedIn Reddit WhatsApp Telegram Email
Previous ArticleDoechii Pulls Out Of European Festival Shows Without Saying Why
Next Article Vivian Ayers Allen, Mother Of Debbie Allen & Phylicia Rashad, Dies
admin
  • Website
  • Facebook

The most informative business website online.

Related Posts

Ebury chooses Birmingham for third UK office launch

Hennessy and Lebron James Launch a New Collector’s V.S.O.P Limited Edition

Teacher education roadmap seeks to address specialization mismatch 

Comments are closed.

Don't Miss
Gossip

Cardi B’s Pregnancy Garners Criticism As She Continues Clubbing

Currently expecting her fourth child, Cardi B‘s pregnancy has become a subject of online debate, causing a…

Brandy Reveals A Health Scare Shut Down Her Concert Early

Immortal Ohtani Blasts Dodgers to the World Series

Ebury chooses Birmingham for third UK office launch

Yung Miami’s Daughter Gets Her Own Cosmetics Line

Hennessy and Lebron James Launch a New Collector’s V.S.O.P Limited Edition

Best Dressed At 2025 Dazzle At The Academy Museum Gala

Monica Ends The Boy Is Mine Concert Early As Brandy Rushes Off

Donald Trump Posts AI-Video of Him Dumping Feces On Protestors

How Trump is Building a Violent, Shadowy Federal Police Force — ProPublica

Teacher education roadmap seeks to address specialization mismatch 

Dame Dash Explains Cam’ron Lawsuit: Contradictions Everywhere

Partynextdoor, G Herbo, & More

Tyler Perry Says Accuser ‘Needs Help’ Amid $260M Assault Case

Vic Mensa Accuses Trump Of Causing Division In Chicago

About Us
About Us

LewLewBiz delivers practical insights on entrepreneurship, finance, and business operations. Explore expert advice on payroll, landlord strategies, and industry news to empower your financial decisions and business growth.

We're accepting new partnerships right now.

Email Us: lewlewmedia@gmail.com
Contact: lewlewmedia@info.com

Facebook X (Twitter) Pinterest YouTube WhatsApp
Our Picks

Cardi B’s Pregnancy Garners Criticism As She Continues Clubbing

Brandy Reveals A Health Scare Shut Down Her Concert Early

Immortal Ohtani Blasts Dodgers to the World Series

Most Popular

A guide for tax professionals

GDP growth may miss top-end goal

Diddy Wants To Return To MSG Once He’s Free, Lawyer Says

© 2025 lewlewmedia since 2016
  • Business
  • Black Business
  • SMALL BUSINESS
  • BANK/FRAUD FINANCIAL CRIMES
  • Celebrities
  • CRYPTO
  • DEBT
  • Entrepreneur
  • ESTATE PLANNING
  • FRANCHISE
  • Gossip
  • GLOBAL ECONOMY
  • Music
  • MUTUAL FUNDS
  • Political
  • Pop Culture
  • PERSONAL FINANCE
  • Wall street
  • Privacy Policy
  • Business News Disclaimer
  • Contact Us
  • Cookie Privacy Policy
  • Disclaimer
  • DMCA
  • Terms and Condition

Type above and press Enter to search. Press Esc to cancel.