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UK Government Borrows More Than Expected as Debt Costs Surge

  • Rishi Sunak says inflation and rising rates are a ‘challenge’
  • Treasury interest costs have surged 70% from a year ago
People near the Houses of Parliament, Westminster, London.

People near the Houses of Parliament, Westminster, London.

Photographer: Luke MacGregor/Bloomberg

Updated on

The UK government borrowed more than forecast in May after a 70% surge in interest payments to service the national debt.

The budget deficit stood at £14 billion ($17.2 billion), £2 billion higher than economists had forecast. Overall government spending was higher than the Office for Budget Responsibility predicted in March, and receipts lower.