LONDON: Britain's government again borrowed more than expected last month, according to official data on Wednesday that highlighted the tight financial backdrop for new finance minister Rachel Reeves as she readies her first annual budget.
British public sector net borrowing was 3.101 billion pounds (US$4.04 billion) in July, the Office for National Statistics said. It was the biggest July total since 2021, when the deficit surged during the COVID-19 pandemic.
Economists polled by Reuters had a median forecast of 1.5 billion pounds for public sector net borrowing, excluding state-controlled banks.
The ONS highlighted rising social benefits, uprated due to inflation, and higher wages in the government as drivers of increased expenditure compared with a year ago.