3m ago 08.12 BST UK grocery inflation jumps to 5.2% More bad news: UK grocery inflation has jumped to its highest level since January 2024, as the cost of living squeeze intensifies. Data provider Kantar has reported that grocery inflation accelerated in the last four weeks, to 5.2% year-on-year. That’s up from 4.7% in the previous month. Fraser McKevitt, Kantar’s head of retail and consumer insight, says the annual cost of household shopping is rising sharply: With the average household spending £5,283 each year at the grocers, this latest rise could add £275 to bills if people’s shopping habits stay the same. Just under two thirds of households say they are very concerned about the cost of their grocery shopping*, and people are adapting their habits to avoid the full impact of price rises. Own label products, which are often cheaper, continue to be some of the big winners and, in fact, sales of these ranges are again outpacing brands, growing by 5.6% versus 4.9%. Share

15m ago 08.00 BST What the experts say: Higher taxes likely Despite public borrowing overshooting official forecasts by £3.6bn in June, to over £20bn, borrowing is still in line with the OBR’s forecasts after the first three months of the fiscal year, points out Alex Kerr, UK economist at Capital Economics. But… Kerr fears things will probably get worse for the Chancellor, forcing her to raise between £15-25bn at the Budget later this year, probably mostly through higher taxes. Kerr told clients: Admittedly, the better-than-expected start to the fiscal year means that borrowing is still on track to meet the OBR’s existing forecasts after the first three months of the 2025/26 fiscal year. But the government’s u-turns on spending cuts and potential upward revisions to the OBR’s borrowing forecasts means the Chancellor will probably need to raise £15-25bn at the Autumn Budget to maintain the £9.9bn of headroom against her fiscal mandate. And given that she is struggling to stick to existing spending plans and we doubt the gilt market will tolerate significant increases in borrowing, she will probably have to raise taxes instead. View image in fullscreen A chart showing how UK government borrowing since April is in line with forecasts from the fiscal watchdog Photograph: ONS Dennis Tatarkov, senior economist at KPMG UK, has warned that June’s higher borrowing piles more pressure on public finances, which could mean spending cuts or tax rises. Tatarkov explains: “Higher than expected interest payments as well as weaker revenues have pushed borrowing above the OBR’s projection for the second month in a row. “Furthermore, the longer-term outlook for public finances remains difficult. Recent U-turns on welfare and persistent growth headwinds could open a gap against fiscal targets, which could require further tax rises or spending cuts in the Autumn Budget. To the extent that ongoing deficits point to lingering budgetary pressures, we would expect the OBR to acknowledge these at the next fiscal event.” Richard Carter, head of fixed interest research at Quilter Cheviot, says today’s UK public sector finances “highlight the parlous state of the government’s fiscal position”, adding: “Recent events have shown how hard it is for the government to bring spending down. Welfare reform was heavily watered down, while winter fuel payments have been reinstated for millions. As we approach the summer recess this is all going to result in additional speculation of what tax rises will be coming down the line given the need to plug the holes. Bond markets are craving some fiscal discipline, so without any spending cuts, taxes will have to rise. “This is all going to negatively impact the UK’s growth position. Labour continually speaks about achieving economic growth but if taxes do need to keep rising to cater for an ever increasing debt, that growth is going to prove elusive.” Share

18m ago 07.57 BST UK strikes deal with private investors to build £38bn Sizewell C nuclear power plant Jillian Ambrose Britain’s monthly borrowing in June would have paid for half a nuclear power station! The UK government has, thiss morning, struck a deal worth more than £38bn with private investors to back Britain’s biggest nuclear project in a generation at the Sizewell C site on the Suffolk coast, my colleague Jillian Ambrose reports. The long-awaited multibillion-pound deal brings together investment from the UK government and Sizewell C’s developer, the French energy group EDF, with a consortium of three other investors including the British Gas parent company Centrica. The UK government’s stake in the project stood at 84% at the end of last year compared with EDF’s 16% share of the project. Under the final deal, the government will remain the project’s largest shareholder, with a 44.9% stake, while the French utility’s share shrinks to 12.5%. Centrica will take a 15% share of the project while the Canadian investment group La Caisse will hold 20%, and investment manager Amber Infrastructure will take an initial 7.6%. The final agreement marks the end of a 15-year journey to secure investment for the nuclear plant since Sizewell C was first earmarked for new nuclear development in 2010… More here: UK strikes deal with private investors to build £38bn Sizewell C nuclear power plant Read more Share

29m ago 07.45 BST As this chart shows, the UK’s national debt (estimated at 96.3% of GDP) is its highest since the early 1960s. View image in fullscreen Illustration: ONS The picture is a little better, though, if we use the chancellor’s favoured debt measures, Public sector net financial liabilities (PSNFL). “Persnuffle” excluding public sector banks was just over £2.5tn at the end of June, or 83.8% of GDP, £178.9bn more than a year ago. PSNFL take into account all the government’s financial assets and liabilities, including student loans and equity stakes in private companies, as well as funded pension schemes. It gives the chancellor room to increase borrowing for investment in long-term infrastructure. Share Updated at 07.54 BST

34m ago 07.40 BST Allow content provided by a third party? This article includes content hosted on ons.gov.uk . We ask for your permission before anything is loaded, as the provider may be using cookies and other technologies. To view this content, click ‘Allow and continue’. Allow and continue Share

43m ago 07.32 BST How government spending rose faster than income in June Borrowing jumped in June because UK government spending rose rather faster than its income. Central government’s current receipts did rise last month, by £5.7bn, to £86.8bn. That increase was due to higher tax receipts, namely: central government tax receipts increased by £2.3bn to £63.6bn; this included increases of £1.0bn in Income Tax, £0.7bn in Value Added Tax (VAT), and £0.5bn Corporation Tax receipts

compulsory social contributions increased by £3.1bn to £17.4bn, on 6 April 2025 changes to the rate of National Insurance contributions paid by employers came into effect But this was more than eaten up by a £12.4bn jump in central government’s current expenditure, to £97.1bn, because: central government debt interest payable increased by £8.4bn to £16.4bn, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index (RPI)

central government departmental spending on goods and services increased by £2.0bn to £37.2bn, as pay rises and inflation increased running costs

net social benefits paid by central government increased by £1.5bn to £26.5bn, largely caused by inflation-linked increases in many benefits and earnings-linked increases to state pension payments

payments to support the day-to-day running of local government decreased by £0.4bn to £12.3bn, these intra-government transfers are both central government spending and a local government receipt, so they have no effect on overall public sector borrowing Share Updated at 07.32 BST

1h ago 07.17 BST Interest payable on central government debt rose to £16.4bn in June Most of the UK government’s borrowing last month was to service existing national debt. The interest payable on central government debt more than doubled to £16.4bn in June 2025, £8.4bn more than in June 2024. That’s £2.4bn more than the £14.0bn forecast by the Office for Budget Responsibility (OBR), and the second-highest for any June apart from in 2022. The increase is driven by index-linked gilts, where the interest rate on the bonds rises and falls in line with the RPI measure of inflation. View image in fullscreen A chart showing the interest payable on central government debt Photograph: ONS Share Updated at 07.25 BST

1h ago 07.07 BST UK borrowing jumps to £20.7bn in June Newsflash: Britain borrowed more than expected last month, as the pressures on the public finances grow and debt interest costs rise. Borrowing jumped to £20.7bn in June 2025, some way over City forecasts for £16.5bn, which will add to the pressure on chancellor Rachel Reeves. That’s £6.6bn more than in June 2024 and the second-highest June borrowing since monthly records began in 1993 (beaten only by June 2020, when the Covid-19 pandemic drove up government spending). Worryingly for the chancellor, it’s also £3.5bn more than the £17.1bn forecast by the Office for Budget Responsibility, which may fuel speculation that the government will breach its fiscal rules unless it raises taxes or cuts spending. The jump was partly driven by higher interest payments on the UK’s national debt, on bonds linked to inflation, which wiped out the recent increase in businesses taxes. Public sector net borrowing excluding public sector banks was £20.7 billion in June 2025.

This was £6.6 billion more than in June 2024 and the second-highest June borrowing since monthly records began in 1993, behind that of June 2020.

Read more ➡️ https://t.co/WBro41C2I8 pic.twitter.com/vIH9h3r21D — Office for National Statistics (ONS) (@ONS) July 22, 2025 ONS acting chief economist Richard Heys said: “Borrowing in the month of June was over £6bn higher than during the same time last year. “The rising costs of providing public services and a large rise this month in the interest payable on index-linked gilts pushed up overall spending more than the increases in income from taxes and National Insurance contributions, causing borrowing to rise in June.” Concerns about the state of the public finances have been rising since the government rowed back on reforms to welfare spending after a revolt among its own MPs, a move that will eat into the chancellor’s fiscal headroom. Share Updated at 07.20 BST

1h ago 07.00 BST View image in fullscreen AstraZeneca CEO Pascal Soriot (front left) and Virginia Governor Glenn Youngkin (front right) at last night’s signing ceremony at the Meridian International Center, in Washington, D.C. Photograph: Ümit Bektaş/Reuters Glenn Youngkin, governor of the Commonwealth of Virginia, has cheered AstraZeneca’s decision to build its new multi-billion dollar drug substances plant in his state. Youngkin, who appeared alongside AstraZeneca’s CEO Pascal Soriot at last night’s signing ceremony, says: “I want to thank AstraZeneca for choosing Virginia as the cornerstone for this transformational investment in the United States. This project will set the standard for the latest technological advancements in pharmaceutical manufacturing, creating hundreds of highly skilled jobs and helping further strengthen the nation’s domestic supply chain. Advanced manufacturing is at the heart of Virginia’s dynamic economy, so I am thrilled that AstraZeneca, one of the world’s leading pharmaceutical companies, plans to make their largest global manufacturing investment here in the Commonwealth.” Share Updated at 07.22 BST

1h ago 06.57 BST AstraZeneca’s new US investment plans Here’s where AstraZeneca plans to spend its $50bn: Expansion of its R&D facility in Gaithersburg, Maryland

State-of-the-art R&D centre in Kendall Square, Cambridge, Massachusetts

Next-generation manufacturing facilities for cell therapy in Rockville, Maryland and Tarzana, California

Continuous manufacturing expansion in Mount Vernon, Indiana

Specialty manufacturing expansion in Coppell, Texas

New sites to supply clinical trials Share