Tax cut hopes raised as UK borrows less than expected in July

£4.3bn last month

The UK’s budget deficit came in smaller than expected in July, potentially giving chancellor Jeremy Hunt room to cut taxes ahead of an election next year.

Net borrowing, excluding state-owned banks, stood at £4.3bn last month, less than the expected figure of £5bn from a Reuters poll of economists. That was £3.4bn more than in July 2022 and the fifth-highest July borrowing since monthly records began in 1993. Jackson Hole: Analysts expect hawkish Fed with no major tone shift In the first quarter of the financial year, the UK's borrowing stood at £56.6bn. That was £13.7bn more than in the same period last year, but £11.3bn less than the £68bn forecast by the Office for Budget Responsibility, whose projections underpin the g...