The budget deficit stood at £35.5 billion in June, taking borrowing in the first three months of the fiscal year to a record £127.9 billion, the Office for National Statistics said on Tuesday. Tax rises nonetheless appear inevitable once the crisis has passed, with Sunak repeatedly saying the public finances need to be returned to a sustainable footing. The ONS cautioned, however, that borrowing estimates remain subject to greater than usual uncertainty, with May seeing downward revisions to both the deficit and debt. A cash measure that determines government bond issuance showed a deficit of £47.1 billion in June, taking the total for the fiscal first quarter to £174 billion. The Debt Management Office is on course to sell around half a trillion pounds of gilts for the year as a whole.

Source: News 24 July 21, 2020 11:19 UTC