Warning over 'fragile' public finances as borrowing rises
Summary
The UK government borrowed £23.3 billion in May 2026, which is nearly one-third more than in May 2025 and £5.6 billion above official forecasts. This rise in borrowing is due to increased spending on debt interest, public services, investment, and benefits, and is influenced by higher inflation linked to the war in the Middle East.Key Facts
- The UK borrowed £23.3 billion in May 2026, up almost 33% from May 2025.
- Borrowing was £5.6 billion higher than predicted by the Office for Budget Responsibility (OBR).
- Increased spending on debt interest, public services, investment, and benefits contributed to higher borrowing.
- Interest payments on government debt reached £11.7 billion, the highest for any May.
- Inflation rose after the Iran conflict began, pushing up borrowing costs.
- Greater Manchester mayor Andy Burnham was elected MP and plans to challenge the Prime Minister’s leadership.
- The Bank of England kept interest rates steady to balance a weak jobs market and rising inflation expectations.
- Retail spending increased by 1.2% in May, helped by good weather and promotions.
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