A rise in bond costs, driven by a jump in inflation to double the rate from the previous month’s peak, widened Britain’s budget deficit in June to the highest since April 2021.
Figures from the ONS said net public sector borrowing (excluding state-owned banks) rose to 22.879 billion pounds ($27.44 billion) from 12.560 billion pounds in May.
Estimates called for a deficit of £23bn.
The figures show Britain had to pay £19.4bn in bond interest alone in June, double the previous record.
The statistics office said the jump in debt costs reflected a big rise in April in the retail price inflation index, which is the benchmark for index-linked government bonds.
In the first three months of the 2022/2023 financial year that began in April, Britain has borrowed £55.4 billion.
Source: Capital
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