UK public sector net borrowing (excluding public sector banks) narrowed to £16 billion in June 2026 from £23.9 billion a year earlier, coming in below market expectations of £19.8 billion.
Still, it was the seventh-highest borrowing recorded for any June since comparable records began in 1993, reflecting stronger tax receipts, particularly from income-related taxes and VAT, alongside slightly lower public spending, as lower inflation-linked debt interest costs helped offset higher expenditure on public services and benefits.
Central government debt interest payments fell 31% year-on-year to £11.8 billion, though they remained the fourth-highest for any June on record.
Borrowing in the financial year through June totaled £57.6 billion, down £3.7 billion from the same period in 2025 but £2.7 billion above the Office for Budget Responsibility's forecast, while public sector borrowing stood at 1.9% of GDP, marking the tenth-highest April-to-June reading since records began in 1993.