Stories

Fri, 19 Jun 2026

Fri, 19 Jun 2026 Warning over 'fragile' public finances as borrowing rises

The UK borrowed £23.3bn in May, according to official figures, up almost a third on the same month last year.

* UK government borrowing increased by £5.6bn more than forecast, reaching £23.3bn in May.
* Interest payable on government debt jumped to a record £11.7bn in May.
* Higher inflation contributed to the increase in borrowing costs.
* Retail spending rose by 1.2% in May due to unseasonably good weather.
* UK inflation is expected to rise further above the Bank of England's 2% target due to the war in Iran.
* The war has had a significant impact on economies around the world, including the UK.
* Government borrowing is predicted to constrain whoever becomes Prime Minister.
* Andy Burnham's election as MP for Makerfield paves the way for him to launch a leadership challenge against the Prime Minister.