UK government borrowing hits record high amid rising debt costs
The UK just borrowed £20.684 billion in June 2025—the second-biggest jump since records began in 1993.
Most of this spike comes from soaring debt interest payments, which actually outpaced what the government collected from income tax and national insurance.
The only time borrowing was higher? Back at the start of COVID-19 when furlough spending peaked.
Chancellor aims to cut debt, balance books by 2030
This year's borrowing is over £6 billion more than last June, highlighting some serious budget pressures. Still, it lines up with official forecasts.
Chancellor Rachel Reeves says she's aiming to cut debt and balance the books by 2030—which could mean higher taxes down the line.
Meanwhile, Treasury officials insist they're sticking to strict rules to keep borrowing in check and help get Britain's finances back on track.