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UK Public Finances (Jun. 2025)

Despite the £3.6bn overshoot in June, public borrowing is still in line with the OBR’s forecasts for the first three months of the 2025/26 fiscal year. But things will probably get worse for the Chancellor. We think that she will need to raise £15-25bn at the Budget later this year to restore her £9.9bn of headroom, with higher taxes doing most of the heavy lifting.

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