PwC comments on Public Sector Finance data - July 2026

Commenting on the latest ONS public sector finance data, Nabil Taleb, economist at PwC UK, says:

“Public sector net borrowing came in at £16.0bn in June 2026, £7.9bn less than was recorded in June last year and £0.3bn less than the forecast from the OBR. Financial year-to-date borrowing was around 6.0% lower than in the same period a year ago, but still £2.7bn above the OBR forecast.

“Debt interest payments reached £11.8bn in June, this was £5.3bn less than a year ago but still the fourth highest in any June on record. Higher debt servicing costs as a share of total revenues leave the public finances more exposed to future economic shocks.

“With Andy Burnham and the new Chancellor, John Healey, taking office, this month’s figures offer some tentative encouragement. The key question is whether their economic plans ease pressure on the public purse or add to it. With borrowing costs still sensitive and fiscal headroom limited, even modest commitments can carry significant consequences. What matters is whether ambition is matched by credible funding and a convincing grip on borrowing. If plans run ahead of what the public finances can support, pressure could build quickly through higher financing costs and sharper fiscal trade-offs. The coming months should show whether the new agenda creates breathing space or adds to the strain.”