The UK Executive recorded a deficit of £1.8 billion (€2.1 billion) in July, a figure that exceeds the projections of the Office for Budget Responsibility (OBR), while the new Government of Andy Burnham finalizes its first budget project for the month of October.
Compared to July 2025, the negative balance of public accounts increased by £700 million (€817 million), which implies a rise of 68.7%, also standing £2.3 billion (€2.68 billion) above the OBR's calculations.
Revenue from income tax amounted to £17.1 billion (about €20 billion), that is, about £1.7 billion (about €2 billion) more than in the same month of the previous year. Between January and July, the accumulated deficit stood at £56.7 billion (€66 billion), which represents a year-on-year decrease of 9.6%, although it still remains above official forecasts.
British public debt reached £2.98 trillion (€3.4 trillion) in July, equivalent to 94.1% of GDP, a percentage slightly lower than a year ago, although the volume in absolute terms continues to rise.
"Fiscal discipline is the foundation of the UK's economic stability and national security, which is why we are committed to adhering to our fiscal rules, with a safety margin against global uncertainties. We are reducing the deficit faster than any other G7 economy, while giving people a breather from the pressures of the cost of living and focusing support on youth employment," said British Finance Minister John Healey in response to the data published this Friday.
In the coming months, Healey will have to design the first budget of the Government of the newly appointed Prime Minister, Andy Burnham, trying to balance public accounts while pursuing increased spending to strengthen investment in defense.