UK public sector net borrowing rose to £20.7 billion (vs £15.6 billion) in June 2025, up £6.6 billion YoY and £3.5 billion above the OBR’s forecast, marking the second-highest June figure since records began in 1993.

• Debt interest payments jumped to £16.4 billion (+£8.4 billion YoY), the second-highest June interest bill since 1997, driven by RPI-linked gilt payments.
• Central government receipts rose £5.7 billion YoY to £86.8 billion, led by increases in Income Tax (+£1.0 billion), VAT (+£0.7 billion), and Corporation Tax (+£0.5 billion).
• Compulsory social contributions rose £3.1 billion YoY to £17.4 billion after April National Insurance rate changes.
• Current expenditure rose £12.4 billion YoY to £97.1 billion, with higher departmental costs (+£2.0 billion) and social benefit payments (+£1.5 billion).
• FY-to-date borrowing (Apr–Jun 2025) totaled £57.8 billion (+£7.5 billion YoY), the third-highest on record; net debt stood at 96.3% of GDP (+0.5 ppts YoY).