UK Budget Deficit Surges in July to Three-Year High, Surpassing £3 Billion

• UK budget deficit hit £3.1 billion in July 2024, marking the highest July deficit in the past three years. This result significantly exceeded economists’ expectations, who had forecasted a deficit of £1.5 billion.
• The deficit is the largest since July 2021, a period heavily impacted by the COVID-19 pandemic and related emergency measures.
• Government spending on public services and social benefits surged by £3.8 billion to £102.5 billion year-on-year, driving the deficit higher.
• Government revenues rose modestly by £2 billion to £99.4 billion, but this increase was insufficient to offset the rising expenditures.
• Since the start of the current fiscal year in April, the UK’s cumulative budget deficit has reached £51.4 billion, making it the fourth-highest deficit for this period since records began in January 1993.

London, August 21 (FFN) – The UK’s budget deficit surged to over £3 billion in July, the highest for this month in three years, according to data from the Office for National Statistics (ONS). The deficit reached £3.1 billion (approximately €3.64 billion), a significant increase compared to economists’ expectations of a £1.5 billion shortfall. This is the largest deficit recorded for July since 2021, a year marked by extensive pandemic-related spending.

The increase in government spending on public services and social benefits was the primary driver behind the widening deficit. These expenditures rose by £3.8 billion to £102.5 billion compared to the previous year. Although government revenues increased by £2 billion to £99.4 billion, this growth was not enough to balance the rising costs.

Since the beginning of the current fiscal year in April, the UK has accumulated a budget deficit of £51.4 billion, £0.5 billion less than the same period last year. However, this remains the fourth-highest deficit for this period since monthly records began in January 1993.

(1 EUR = 0.85194 GBP)

Key Data on UK Budget (July 2024)