UK reports unexpected deficit of £1.8bn as John Healey prepares for first budget

<p>July data shows total public debt was £2.98tn, or 94% of GDP – up £96bn on a year earlier</p><ul><li><p><a href="https://www.theguardian.com/business/live/2026/aug/21/retail-sales-economy-consumer-ons-heatwave-ftse-stock-market-growth-oil-live-updates">Business live – latest updates</a></p></li></ul><p>The UK government ran a larger-than-expected £1.8bn deficit in July, underlining the challenges facing the chancellor, John Healey, as he draws up his first budget.</p><p>City economists had expected a shortfall of zero for July, a month when Treasury receipts tend to be swollen by self-assessment income tax payments.</p> <a href="https://www.theguardian.com/politics/2026/aug/21/uk-unexpected-deficit-john-healey-prepares-for-first-budget">Continue reading...</a>