UK public sector net borrowing estimated at £22.9B in June, up by £4.1B from June 2021; public sector net debt was £2.39T at end of June, or 96.1% of GDP: ONS

LONDON , July 21, 2022 (press release) –

How the relationship between UK public sector monthly income and expenditure leads to changes in deficit and debt.

Main points

• Public sector net borrowing excluding public sector banks (PSNB ex) was £22.9 billion in June 2022, which is the second-highest June borrowing since monthly records began in 1993; this was £4.1 billion more than in June 2021.
• Central government current (or day-to-day) expenditure increased by £9.0 billion to £86.0 billion, largely because of a £10.3 billion increase in the interest payable on its debt compared with June 2021.
• Central government debt interest payable was £19.4 billion in June 2022, which is the highest since monthly records began in April 1997; this is largely because of the effect of Retail Price Index (RPI) rises on index-linked gilts.
• Central government receipts were £70.5 billion in June 2022, which is £7.9 billion more than in June 2021; of this, tax receipts were £51.4 billion, which is an increase of £5.1 billion compared with June 2021.
• PSNB ex was £55.4 billion in the financial year to June 2022; this was £5.7 billion less than in the same period last year but £32.1 billion more than in the financial year to June 2019.
• Since our last publication, we have reduced our estimate of PSNB ex in the financial year ending (FYE) March 2022 by £1.9 billion to £141.8 billion.
• Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £12.3 billion in June 2022, which is £7.0 billion less than in June 2021; this brought the total to £26.2 billion in the financial year to June 2022.
• Public sector net debt excluding public sector banks (PSND ex) was £2,387.6 billion at the end of June 2022, or around 96.1% of gross domestic product (GDP), which is an increase of £183.0 billion or 1.0 percentage points of GDP compared with June 2021.
• Public sector net debt excluding public sector banks and the Bank of England (PSND ex BoE) was £2,068.4 billion at the end of June 2022, or around 83.2% of GDP, which is an increase of £92.0 billion but a reduction of 2.1 percentage points of GDP compared with June 2021.

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