UK government borrowed less than forecast in July in boost for Rachel Reeves
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Government handed surprise boost with borrowing figures
- The UK government's borrowing in July was £1.1 billion, significantly lower than the £2 billion economists had predicted.
- This figure marks the lowest July borrowing total in three years and represents a £2.3 billion reduction compared to the same month last year.
- The improved performance was primarily driven by a significant increase in tax receipts, particularly from self-assessed income tax and national insurance payments.
- Despite this positive monthly outcome, cumulative borrowing for the first four months of the financial year stands at £60 billion, an increase of £6.7 billion over the corresponding period last year.
- The figures emerge amidst warnings that the Chancellor may need to raise taxes to address a potential £51 billion shortfall in public finances.