Government borrowing higher than expected in July

Data published by the Office for National Statistics (ONS) has revealed that government borrowing was higher than experts had anticipated in July.

24 Aug 2026

Data published by the Office for National Statistics (ONS) has revealed that government borrowing was higher than experts had anticipated in July.

Borrowing totalled £1.8 billion in July. Official forecasters had expected a surplus of £500 million - meaning that borrowing was £2.3 billion more than predicted.

According to economists, the higher borrowing figure will constrain Chancellor John Healey's economic growth plans and limit Prime Minister Andy Burnham's room for manoeuvre for reducing the cost of living on UK households.

The Chancellor said he will make use of 'strong fiscal discipline' at the upcoming Autumn Budget.

Responding to the data, Mr Healey said: 'We are cutting the deficit faster than any other G7 economy, while giving people a bit of breathing space with cost-of-living pressures and focusing support to get young people into work.'

The Chancellor will deliver the Autumn Budget on 28 October.