India, July 22 -- The UK budget deficit widened more than estimated in June on higher debt servicing costs, which has added pressure on Chancellor Rachel Reeves to raise taxes at the autumn budget.
Public sector net borrowing rose by GBP 6.6 billion from the previous year to GBP 20.7 billion in June, the Office for National Statistics reported Tuesday.
This was bigger than the GBP 17.1 billion shortfall forecast by the Office for Budget Responsibility. Moreover, it was the second-highest borrowing in any June since monthly records began in 1993.
Data showed that interest payable on government debt rose GBP 8.4 billion to GBP 16.4 billion on rising cost of index-linked debt due to the rise in inflation.
The current budget deficit, which ...