The UK government borrowed more than expected last month, pushing up the country’s deficit by nearly £2bn in the three months to the end of June according to figures out this morning.
Public sector net borrowing hit £6.85bn in June, higher than an average forecast of around £4.8bn and driving the country’s cumulative borrowing bill to £22.8bn in the financial year to date.
The Office for Budget Responsibility (OBR) forecast that public sector net borrowing will be £58.3 billion during the financial year ending March 2018.
The latest update means the financial year-to-date figures are £1.9bn higher than at the equivalent point last year.
The rise in borrowing was driven by 5.6% increase in government spending, which outpaced growth in tax receipts.
Britain’s contribution to EU coffers in the three months through June was GBP3.2 billion, almost twice the GBP1.8 billion paid during the same period a year earlier. The increase reflected past economic growth, the ONS said, while a rise in inflation earlier this year pushed up the cost of servicing Britain’s inflation-linked debt. Tax income rose 4.7%.
