Public borrowing below forecasts despite July rise

Although debt interest payments in July reached an all time high, government borrowing fell short of expectations last month.

Official data shows that borrowing reached an amount of £4.3 billion, a difference between expenditure and tax revenue.

That was £3.4bn more than a year ago and the fifth-highest figure for July since monthly records began in 1993.

The growth in self assessment income tax revenues was below the expected level of around 5 billion pounds.

According to the Office for National Statistics, at the end of July total net debt had reached GBP2.6 billion, about 98.5% of UK gross domestic product and an annualised value of goods and services produced in the United Kingdom.

With an expected general election in 2024, there have been rumours that the government will seek to announce a cut in taxes during this autumn’s statement.