Economic Buzz: UK Budget Deficit Increases Further In June

21 Jul 2022 , 02:22 PM

The UK budget logged its second biggest deficit for the month of June on record, as high inflation pushed up the debt servicing cost of government, the Office for National Statistics reported. Public sector net borrowing excluding public sector banks increased by GBP 4.1 billion to GBP 22.9 billion in June. The interest payable on central government debt increased by GBP 10.3 billion from the previous monthly record set in June 2021, to GBP 19.4 billion. The rising cost of debt servicing is largely a result of higher inflation, with the interest payable on index-linked gilts rising in line with the retail prices index. Powered by Commodity Insights