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Economic Buzz: UK budget deficit widens on higher debt servicing costs
22-Jul-2025 17:09
The UK budget deficit widened in June on higher debt servicing costs. Public sector net borrowing rose by GBP 6.6 billion from the previous year to GBP 20.7 billion in June, the Office for National Statistics reported Tuesday. This was bigger than the GBP 17.1 billion shortfall forecast by the Office for Budget Responsibility and was the second-highest borrowing in any June since monthly records began in 1993. Data showed that interest payable on government debt rose GBP 8.4 billion to GBP 16.4 billion on rising cost of index-linked debt due to the rise in inflation.

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