Monthly update: June 2026

What changed, and why

What changed this month?

The government borrowed £16.0 billion in June 2026, the gap between what it spent and what it raised. This was £7.9 billion less than the same month last year and slightly below the OBR forecast.

Why did borrowing move?

Tax receipts grew strongly while debt interest costs fell sharply, more than offsetting higher spending on public services and benefits.

What happened to tax receipts?

Receipts grew strongly over the year, led by income tax, corporation tax and VAT.

What happened to spending?

Debt interest fell sharply, but spending on public services, benefits and other costs rose, leaving overall spending slightly lower than a year earlier.

What happened to debt interest?

Central government debt interest payable was £11.8 billion in June, £5.3 billion less than a year earlier, as the inflation uplift on index-linked gilts was far smaller than in June 2025.

How does this compare with the OBR forecast?

Borrowing came in £0.3 billion below the OBR's forecast of £16.3 billion for the month, with both central and local government borrowing a little less than expected. For the financial year so far, borrowing of £57.6 billion is still £2.7 billion above the OBR's forecast, so the year is running higher than planned even though this month came in under. One month is a weak guide and figures are routinely revised.