UK July Borrowing Less Than Forecast

(RTTNews) - UK budget deficit was less than expected in July and the fifth largest on record for the month, preliminary data from the Office for National Statistics showed Tuesday.

Public sector net borrowing excluding public sector banks, PSNB ex, was GBP 4.3 billion in July, which was GBP 3.4 billion more than a year ago. Economists had forecast a borrowing figure of GBP 5 billion. In the financial year to July, PSNB ex was GBP 56.6 billion, which was GBP13.7 billion more than in the same four-month period last year. However, borrowing was GBP 11.3 billion less than the £68.0 billion forecast by the Office for Budget Responsibility (OBR).

"Borrowing in July 2023 was the fifth highest in any July on record but is GBP 1.7 billion less than the GBP 6.0 billion forecast by the OBR," the ONS said. Central government net cash requirement, excluding UK Asset Resolution Ltd and Network Rail, was GBP 10.0 billion in July 2023, which was GBP 10.9 billion below the GBP 20.9 billion forecast by the OBR.

Net debt was GBP 2,578.9 billion at the end of July, which was around 98.5 percent of the gross domestic product. This was 1.9 percentage points higher than in July last year and continued at levels last seen in the early 1960s, the ONS said. The interest payable on central government debt in July grew by GBP 1.5 billion year-on-year to GBP 7.7 billion. This was a July record.

July receipts were boosted by self-assessed income tax each year, with the GBP 11.8 billion received this month being a July record, the ONS said. This was GBP 2.5 billion more than last year.