“Today’s data shows that the customary boost from self-assessed tax receipts in July was not enough to prevent a deficit of £3.1bn, higher than budgeted, as cost pressures drove up public spending. Debt increased to £2,746bn or 99.4% of GDP at the end of July, up £5.9bn from the end of June 2024.
“The government is now in crisis control mode as it searches for savings to offset significant unbudgeted cost overruns in this financial year, with the cumulative deficit to July 2024 standing at £51.4bn, £4.7bn more than budgeted.
“Rumours that the government is looking at significant cuts in public investment programmes this year to keep within budget are concerning, given the importance to economic growth of infrastructure and the urgent need for upfront investment in technology to fix poorly performing public services. Our hope is that the Chancellor will be able to take a more strategic view in her Autumn Budget in October and in the Spending Review in the spring.”
ENDS
Notes to editors:
CONTACT: ICAEW media office stephen.froome@icaew.com or 07970 402 073
- The government has said it plans to announce the result of a one-year Spending Round for the 2025/26 financial year at the Autumn Budget 2024 in October, and a three-year Spending Review for the 2026/27, 2027/28 and 2028/29 financial years in spring 2025.
- Public sector net debt as a share of GDP of 99.4% is 3.8 percentage points higher than it was in July 2023 and is the highest it has been since the early 1960s.