UK borrows more in July than anticipated, highlighting Reeves' dilemma

Britain's government borrowed more than anticipated last month, according to official data released on Wednesday, underscoring the challenging financial environment for new finance minister Rachel Reeves as she prepares her first annual budget.

The Office for National Statistics (ONS) reported that British public sector net borrowing in July reached 3.101 billion pounds (US$4.04 billion). This marks the highest July borrowing since 2021, when the deficit spiked due to the COVID-19 pandemic.

Economists surveyed by Reuters had projected a median forecast of 1.5 billion pounds for public sector net borrowing, excluding state-controlled banks.

The ONS pointed to rising social benefits, which have been adjusted for inflation, and higher government wages as key factors contributing to the increased expenditure compared to last year.

Paraphrasing text from "Reuters" all rights reserved by the original author.