Britain borrowed more than expected in June as a jump in inflation pushed up the government’s debt costs.
Public sector net borrowing totalled £20.7bn last month, official data showed on Tuesday, ahead of forecasts, £6.6 billion more than in June 2024 and the second highest amount for June on record only surpassed at the height of the Covid lockdown in June 2020.
Interest payments covering government debt, which has continued to rise closer to 100 per cent of UK GDP, were £16.4bn, more than double levels seen last year.
The Government is having to pay 0.6% on 30 year gilts back in 2020. Today it has to pay 5.5% due to the interest rate being liked to inflation.