The UK government borrowed £16 billion in June 2026, down £7.9 billion — or 33% — from the same month a year earlier, the Office for National Statistics (ONS) reported on 21 July 2026. The figure came in slightly below forecasts.

Public sector net borrowing, which excludes state-owned banks, is the standard measure of how much the government spends beyond what it raises in revenue. The ONS attributed the fall to higher tax receipts and slightly lower spending, mainly because the cost of servicing inflation-linked government debt had eased.

The central government's net cash requirement — the amount it needed to raise in cash to cover the gap between income and spending — stood at £19.1 billion for the month. The current budget deficit, which covers day-to-day spending rather than investment, was £11.8 billion. Public sector net investment was £4.2 billion.

June's figure marked a sharp reversal from May 2026, when borrowing reached £23.3 billion — £5.4 billion (30.4%) higher than in May 2025. In the financial year to May 2026, borrowing totalled £46.3 billion, £8.9 billion (23.9%) above the same period a year earlier. Interest on government debt hit £11.7 billion in May, the highest ever recorded for that month.

The government was forecast to run a £115.5 billion deficit in the 2026/27 financial year, equivalent to 3.6% of GDP, down from 4.3% in 2025/26.

Borrowing in the financial year to June 2026 ranks as the 10th highest April-to-June period since comparable monthly records began in 1993. Public sector net debt, excluding state-owned banks, stood at £2,989.9 billion — equivalent to 94.9% of GDP.

Separate ONS labour market data, published alongside the borrowing figures, showed the UK unemployment rate unchanged between March and May 2026. The ONS described the labour market as "relatively steady."

The broader context here is one of monthly volatility against a still-high debt pile. June's fall in borrowing, while welcome to the Treasury, followed a May figure that itself undershot expectations on the upside and set a record for May debt interest. The year-on-year improvement in June was driven largely by the mechanical effect of lower inflation-linked interest costs on index-linked gilts — government bonds whose payouts rise with inflation — rather than by structural fiscal tightening. With debt at nearly 95% of GDP and the Office for Budget Responsibility forecasting a £115.5 billion deficit for the full year, June's figure provides fiscal headroom only at the margin.

The contrast between May and June also shows how difficult it is to read medium-term fiscal trends from a single month's data. Borrowing in the financial year to May was running £8.9 billion above the previous year; one month later, the year-on-year trajectory had improved materially, though the cumulative position remained historically high. The next ONS public sector finances release, covering July 2026, is scheduled for 21 August 2026.

No HM Treasury press release or commentary on the June figures had been identified at the time of publication. The Treasury published a companion bulletin for the May release; no equivalent document for June appeared in the search results.