The government collected \u00a317.1 billion in self-assessment tax in July.Public sector borrowing still reached \u00a31.8 billion, against expectations of a balanced month.Total government debt has climbed to almost \u00a33 trillion, adding pressure ahead of the October Budget.<\/p>\n
Britain collected \u00a317.1 billion in self-assessment tax in July, \u00a31.7 billion more than a year earlier. Yet the government still ended the month with a \u00a31.8 billion deficit, raising fresh questions about how much room chancellor John Healey will have when he delivers his first Budget on October 28<\/a>.<\/p>\n July is normally one of the better months for the public finances because self-assessment tax payments give Treasury receipts a seasonal boost. Economists had expected the government’s finances to be roughly balanced. Instead, spending grew faster than income.<\/p>\n The result means government borrowing was \u00a32.3 billion higher than the Office for Budget Responsibility forecast for the month and \u00a3700 million higher than in July last year.<\/p>\n More tax came in, but spending grew faster<\/p>\n The main problem was not a collapse in tax receipts. The government actually collected more.<\/p>\n Instead, several areas of spending increased sharply. Central government spending on social benefits was \u00a32 billion higher than a year earlier, while spending on goods and services, including staff costs, rose by \u00a31.2 billion.<\/p>\n That pushed total borrowing for the first four months of the 2026-27 financial year to \u00a356.7 billion.<\/p>\n The figure is lower than the same period last year, but it is still \u00a32.3 billion above the OBR’s forecast, leaving Healey with less room for manoeuvre than planned.<\/p>\n The pressure is not limited to the monthly borrowing figure.<\/p>\n Government debt reached \u00a32.98 trillion in July, equivalent to about 94 per cent of GDP, and was \u00a396 billion higher than a year earlier.<\/p>\n