Government borrowing lower than expected in July
By Michele Maatouk
Date: Thursday 21 Aug 2025
(Sharecast News) - UK government borrowing was lower than expected in July, according to data released on Thursday by the Office for National Statistics.
Borrowing came in at £1.1bn, down £2.3bn on July 2024 and marking the lowest July figure for three years following tax rises in April. Analysts were expecting £2.6bn and the Office for Budget Responsibility had forecast £2.1bn.
Borrowing in the financial year to July rose £6.7bn to £60bn. This was the third-highest April to July borrowing since monthly records began, after those of 2020 and 2021.
Self-assessed income tax receipts were provisionally estimated at £15.5bn, up £2.7bn on the same month a year earlier. In March, the OBR forecast tax receipts of £14.9bn.
Rob Doody, ONS deputy director for public sector finances, said: "Borrowing this July was £2.3bn down on the same month last year, and was the lowest July figure for three years.
"This reflects strong increases in tax and National Insurance receipts.
"However, in the first four months of the financial year as a whole, borrowing was over £6bn higher than in the same period in 2024."
Nabil Taleb, economist at PwC UK, said: "Although tax receipts rose in July, the Chancellor remains under pressure as she tries to balance weak growth with the fiscal rules she has committed to. While the government's manifesto promises to maintain investment and shield working people from tax hikes, analysis from NIESR suggests up to £40bn in additional revenue may be needed to restore headroom and maintain investor confidence in the UK's public finances.
"As the Chancellor prepares for the Autumn Budget, the challenge will be finding creative sources of revenue while treading carefully around the impact on living standards."
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