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UK borrowing surges over forecasts in May as government spending rises – business live

Rolling coverage of the latest economic and financial news

This chart shows how UK government borrowing has been higher so far this financial year (light blue) than in the 2025-26 financial year (dark blue).

Today’s public finances report also shows how inflation drove up the cost of servicing the national debt in May.

central government departmental spending on goods and services increased by £2.2bn to £39.6bn, as inflation increased the cost of providing public services

net social benefits paid by central government increased by £1.2bn to £28.4bn; this was largely caused by inflation-linked increases in many benefits, and earnings-linked increases to State Pension payments

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Jun 19, 2026 Business Economics Stock markets

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