UK reports unexpected deficit of £1.8bn as John Healey prepares for first budget
Summary
The UK government had a bigger deficit than expected in July, borrowing £1.8 billion despite strong tax income. Chancellor John Healey faces challenges as he prepares his first budget amid slower economic growth and rising costs.Key Facts
- The UK government’s borrowing in July was £1.8 billion, higher than the expected zero deficit.
- July usually sees higher tax payments, which made the deficit surprising.
- From April to July, the UK’s total deficit was £56.7 billion, lower than last year but more than forecast.
- Public debt reached £2.98 trillion, about 94% of the country’s economic output (GDP).
- The government plans to borrow more to invest in infrastructure projects.
- Chancellor John Healey will announce the new budget on 28 October.
- Inflation, slower economic growth, and rising bond costs threaten the UK’s financial outlook.
- The government aims to reduce the deficit while supporting people with cost-of-living pressures and youth employment.
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