Overview

• Government borrowing rose to £17.7bn in May, marking the second-highest May total since records began, driven by higher running costs and inflation-linked benefit increases.
• Central government current expenditure climbed to £184.2bn in April and May, up £9.5bn on last year as pay rises and benefit uplifts pushed costs higher.
• National insurance contributions surged by £3.9bn to £30.2bn over April and May following the increase in employer NICs implemented in April.
• Public sector net debt reached £2.87tn at the end of May, equivalent to 96.4% of GDP and the highest ratio since the early 1960s.
• Economists forecast that between £10bn and £20bn of tax rises may be required in the autumn budget to restore the chancellor’s £9.9bn fiscal buffer after slower growth and rising borrowing costs.