KPMG UK senior economist Dennis Tatakov said government borrowing continues to be off-track. Public sector net borrowing was £1.8bn in July, versus £1.1bn a year earlier. Since the fiscal year began in April the shortfall between forecast and actual borrowing has remained around £2.3bn. Stronger-than-usual July PAYE receipts were insufficient to realign borrowing, and pledged cost-of-living support could keep near-term borrowing elevated. Market appetite for additional debt is limited.

2026-08-21

KPMG UK senior economist Dennis Tatakov said government borrowing continues to be off-track. Public sector net borrowing was £1.8bn in July, versus £1.1bn a year earlier. Since the fiscal year began in April the shortfall between forecast and actual borrowing has remained around £2.3bn. Stronger-than-usual July PAYE receipts were insufficient to realign borrowing, and pledged cost-of-living support could keep near-term borrowing elevated. Market appetite for additional debt is limited.