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The cost of UK government borrowing falls and the pound rallies as the PM says he works "in lockstep" with Rachel Reeves.

Rolling coverage of the latest economic and financial news

Borrowing over the first six months of the financial year stood at £99.8bn, up £11.5bn from the same period last year.

Borrowing during the month rose 25 per cent from April last year to 24.3 billion pounds, the second-highest borrowing figure for April on record, official data showed on Friday.

Party leadership is staying in campaign mode to make sure public is aware how much ex-government has tied its hands Where the Conservatives had “there is no money”, Labour now has “the things we shamefully left undone”. The government has spent much of…

The UK government borrowed £16bn in June, slightly below the £16.3bn forecast by the Office for Budget Responsibility (OBR), according to official data. This marks a £7.9bn reduction compared to June 2025, with the Office for National Statistics (ONS) noting a 'relatively steady' labour market. However, total debt remains near £3 trillion, close to the annual value of the UK economy. While the borrowing figure is better than expected, economists highlight the fragility of public finances, with limited scope for additional borrowing. The OBR's forecast for the current financial year shows borrowing at £57.6bn, £2.7bn above predictions. New Prime Minister Andy Burnham and Chancellor John Healey have pledged to adhere to fiscal rules, though Burnham has indicated flexibility for policy changes. Interest payments on debt fell to £11.8bn, the lowest since 2020, but remain the fourth highest on record. Unemployment stayed at 4.9%, with private sector wage growth dipping below 3% for the first time since 2020, raising concerns about living costs and potential interest rate stability.

In April, the UK government's borrowing reached £24.3 billion, significantly exceeding both the figure from the same period last year and the £20.9 billion projected by the Office for Budget Responsibility (OBR). Despite higher tax revenues, increased spending on benefits and other public services drove the borrowing surge. Benefit expenditure rose by £2.7 billion, mainly due to inflation-linked increases and the earnings-related rise in the state pension. Debt interest payments also hit a record £10.3 billion for April, up £0.9 billion from last year. Economists note that the higher borrowing reflects substantial government spending and could influence fiscal policy decisions in the coming months. Separate data from the Office for National Statistics (ONS) indicated a 1.3% drop in retail sales volumes in April, largely due to falling motor fuel sales. The combination of rising energy prices, slower economic growth, and elevated public borrowing presents a challenging fiscal environment. In response, the government has announced measures to ease the cost of living, including reduced VAT on family day out tickets, free bus travel for under-16s in August, and import tax cuts on certain foods, funded partly by changes to taxes on UK-based oil and gas firms. Analysts warn that borrowing may remain high throughout the year, potentially requiring adjustments in fiscal policy at the autumn Budget.

Rep. Schweikert used a 60‑minute floor presentation to argue that federal borrowing raises mortgage and borrowing costs, highlighted projections of rising Medicare spending and debt, and proposed steps to reduce program leakage and duplicate payments.

Several factors restrict the Labour government’s room for manoeuvre in its agenda for growth The economic outlook is improving, but a recovery from last year’s recession will be long and arduous without a boost to public investment. Continue reading...

In a surprising turn of events, the UK government borrowed less than half of what had been forecasted for the month of July, with official data revealing that public sector net borrowing stood at £1.1...

The UK’s public finances have come under renewed scrutiny after official figures revealed that government borrowing climbed to £14.3 billion in February,

Let us pray that the current laissez-faire approach to public debt is brought to an end this year. Parliament come in, come in … Namibia’s central government debt has grown more than 10% – to about N$166 billion – from a year ago. In other words, government borrowing is equivalent to 66% of the country’s economy, denoted to gross domestic product (GDP). Less than 10 years ago, public debt amounted to not more than 30% of the GDP. Put differently, the government will have to spend close to N$14 billion this year on paying interest for the debt. That is money out of tax coffers that could very well have been better spent on supporting sustainable and long-term food and energy security for Namibia. Borrowing in itself is not a problem – that should be clear. However, there’s a carefree attitude that a state does not become bankrupt and therefore can borrow endlessly to take care of its population. Look no further than neighbours Mozambique, Zambia, Zimbabwe and now Botswana, who are beginning to feel there’s a point at which debt causes direct pain for citizens when not well managed. Zambia remains in a vicious cycle of debt with the population’s living conditions and poverty not improving. Botswana is experiencing electricity blackouts after its power utility raked up huge debt with South Africa’s Eskom amid heavy reliance on its power supply. The problem is not the borrowing. Trouble comes when the money borrowed pays for short-term, non-productive spending that does not lead to growing the economic pap and vleis. Namibia’s government has spent billions of dollars on what are now clearly white elephants, like the N$7.5-billion fuel storage facility. Overspending on new nice-to-haves like three-lane freeways, bridges, underpasses and fancy over-carriage roads, instead of maintenance of infrastructure, has now been exposed by a non-functional railway and potholes that are solely being blamed on this year’s generous rain. It is encouraging that new members of the National Assembly are demanding documents to approve this year’s budget with better information and a deeper understanding of how tax funds will be used. The parliament needs to go further than merely asking for documents. Lawmakers should demand and set boundaries around government borrowing. They should know how much and for what is borrowed in the name of their voters. The public should be informed what loans the government is guaranteeing, especially for many of the mismanaged money-gobbling parastatals and so-called public enterprises. Moreover, the parliament should set a ceiling on borrowing with an oversight body, guided by experts, to be able to curtail runaway debt. We don’t need to pray. Lawmakers, especially the opposition, should realise they are the alternative government leaders to whom voters will turn if they don’t see the current rulers bring about improvements. Don’t wait until you are voted into power before you realise the tax coffers are empty with no money to fulfil election promises, because borrowed funds were wasted on vanity projects and empty rhetoric. The post A Veto Over Govt Borrowing appeared first on The Namibian.

Let us pray that the current laissez-faire approach to public debt is brought to an end this year. Parliament come in, come in … Namibia’s central government debt has grown more than 10% – to about N$166 billion – from a year ago. In other words, government borrowing is equivalent to 66% of the country’s economy, denoted to gross domestic product (GDP). Less than 10 years ago, public debt amounted to not more than 30% of the GDP. Put differently, the government will have to spend close to N$14 billion this year on paying interest for the debt. That is money out of tax coffers that could very well have been better spent on supporting sustainable and long-term food and energy security for Namibia. Borrowing in itself is not a problem – that should be clear. However, there’s a carefree attitude that a state does not become bankrupt and therefore can borrow endlessly to take care of its population. Look no further than neighbours Mozambique, Zambia, Zimbabwe and now Botswana, who are beginning to feel there’s a point at which debt causes direct pain for citizens when not well managed. Zambia remains in a vicious cycle of debt with the population’s living conditions and poverty not improving. Botswana is experiencing electricity blackouts after its power utility raked up huge debt with South Africa’s Eskom amid heavy reliance on its power supply. The problem is not the borrowing. Trouble comes when the money borrowed pays for short-term, non-productive spending that does not lead to growing the economic pap and vleis. Namibia’s government has spent billions of dollars on what are now clearly white elephants, like the N$7.5-billion fuel storage facility. Overspending on new nice-to-haves like three-lane freeways, bridges, underpasses and fancy over-carriage roads, instead of maintenance of infrastructure, has now been exposed by a non-functional railway and potholes that are solely being blamed on this year’s generous rain. It is encouraging that new members of the National Assembly are demanding documents to approve this year’s budget with better information and a deeper understanding of how tax funds will be used. The parliament needs to go further than merely asking for documents. Lawmakers should demand and set boundaries around government borrowing. They should know how much and for what is borrowed in the name of their voters. The public should be informed what loans the government is guaranteeing, especially for many of the mismanaged money-gobbling parastatals and so-called public enterprises. Moreover, the parliament should set a ceiling on borrowing with an oversight body, guided by experts, to be able to curtail runaway debt. We don’t need to pray. Lawmakers, especially the opposition, should realise they are the alternative government leaders to whom voters will turn if they don’t see the current rulers bring about improvements. Don’t wait until you are voted into power before you realise the tax coffers are empty with no money to fulfil election promises, because borrowed funds were wasted on vanity projects and empty rhetoric. The post A Veto Over Govt Borrowing appeared first on The Namibian.