The UK government borrowed £1.1bn last month, the lowest July borrowing for three years, in a boost to the chancellor ahead of her autumn budget.
The figure was £2.3bn lower than a year earlier, the Office for National Statistics said. It was also below economists’ forecasts.
Income tax receipts via self-assessment totalled £15.5bn, £2.7bn more than in July 2024.
So far this financial year, from April to July, borrowing totalled £60bn, £6.7bn higher than in the same period last year, and the third-highest borrowing for the period since records began, after those of 2020 and 2021. It is in line with the Office for Budget Responsibility’s forecast of £59.9bn for that period.
Darren Jones, the chief secretary to the Treasury, said: “We’re investing in our public services, and modernising the state, to improve outcomes and reduce costs in the medium term.
“Far too much taxpayer money is spent on interest payments for the longstanding national debt. That’s why we’re driving down government borrowing over the course of the parliament – so working people don’t have to foot the bill and we can invest in better schools, hospitals, and services for working families.”
The ONS said central government tax receipts increased by £14.8bn to £264.7bn in the financial year so far.
This included increases of £7.7bn in income tax, £3.2bn in VAT and £2.5bn in corporation tax.
Compulsory social contributions increased by £9.5bn to £63.8bn, after changes to the rate of national insurance contributions paid by employers came into effect on 6 April.
Today’s key events
• Jackson Hole Symposium in Kansas
• 8.15am BST: France HCOB PMIs flash for August
• 8.30am BST: Germany HCOB PMIs flash for August
• 9am BST: eurozone HCOB PMIs flash for August
• 9.30am BST: UK S&P Global PMIs flash for August
• 1.30pm BST: US Initial jobless claims for week of 16 August
• 3pm BST: US Home sales for July
We’ll be tracking all the main events throughout the day on our business live blog …
