Labour has said it has received the worst economic inheritance since the second world war after official figures showed the government borrowed more than expected in June.
Underscoring the challenges facing the chancellor, Rachel Reeves, the Office for National Statistics reported that UK borrowing – the difference between public sector spending and income – was £14.5bn last month.
Although borrowing in the first three months of 2024-25 was £1.1bn lower than the same period a year earlier, at £49.8bn, the Office for Budget Responsibility said it was £3.2bn above its last forecast, published at the March budget.
Labour has warned in the first weeks since its election landslide that, after 14 years of Conservative rule, it has inherited a dire financial position, with the national debt at its highest levels since the 1960s.
Darren Jones, the chief secretary to the Treasury, said on Friday: “Today’s figures are a clear reminder that this government has inherited the worst economic circumstances since the second world war, but we’re wasting no time to fix it.
“Fixing the economy’s foundations and restoring stability is the only way we can create growth and put more money back into people’s pockets across the country. That’s why we’ve introduced our budget responsibility bill, which will ensure that no future government can play fast and loose with the public finances.”