Government borrowing higher than expected in June

UK government borrowing rose by more than expected last month following a big increase in debt interest payments.

Borrowing - the difference between public spending and tax income - was £20.7bn in June, up £6.6bn from the same month last year, the Office for National Statistics (ONS) said.

It was the second-highest June borrowing figure since monthly records began in 1993, the ONS added, behind only June 2020, which was heavily affected by the pandemic.

The UK statistics body said higher spending on public services and debt interest payments outstripped revenue from other taxes including National Insurance Contributions which were lifted in April.