UK public sector net borrowing was recorded at £22.8 billion in June
UK public borrowing fell compared to the same month a year ago as the economic recovery allowed reduced spending and increased tax revenue.
Public sector net borrowing figures were recorded at £22.8 billion from £28.3 billion in the same month in 2020, according to data from the National Statistics Office.
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Despite the fall, this number is the second highest level recorded in June since the record began.
Borrowing has hit record highs, including Furlough Payments, as measures are being taken to support the economy during the pandemic.
However, the big picture is not pretty for the UK’s finances, as the impact on government debt and interest payments increased by more than 200% to over £8.7 billion as inflation rose.
His attention could be raised in the aftermath of the pandemic after British Prime Minister Rishi Snack dealt with the pandemic’s problems by borrowing more money.
Overall, the amount borrowed by the UK was below the expected £25.5 billion in March for budget liability (OBR).
Danni Hewson of AJ Bell Financial Analyst commented on the public spending figures today. Hewson argued that the numbers are evidence that lifting restrictions are driving the economy forward, but that’s not all good news.
“Government spending actually increased by £2.5 billion in June compared to June 2020. The vaccine and testing and trace programs and interest payments on debt piles resulted in the cost of Houlaf. It has declined. The £8.7 billion, up a whopping £6 billion from the same month last year, is the highest since its record began in April 1997. This is the impact hike where inflation can benefit from. It’s a timely reminder that you’re being pegged, and it increases the RPI,” Hughson said.
“It certainly looks at his ledger for a long time, as is the simple fact that the Prime Minister has looked at his ledger for a long time, taxes have risen, but the country is still well beyond its means, so he has seen his ledger for a long time. Going forward, he will be pressured to waving that magical money tree and find extra cash to promote recovery, especially in areas such as health and education. And inflation will make economists money. If it gets hot longer than you expect from a tree’s magic potion, it could have an unfortunate aftertaste.”
