LONDON, Aug 21 (Reuters) - Britain's borrowing in the current financial year so far has matched the official forecasts that underpin the tax and spending plans of finance minister Rachel Reeves, according to official data published on Thursday.

Government borrowing in the April-to-July period totalled 60.0 billion pounds ($80.7 billion), in line with a forecast of 59.9 billion pounds published by the Office for Budget Responsibility earlier this year.

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However, since the forecast was made Prime Minister Keir Starmer's government has backtracked on plans to cut spending in the welfare system and elsewhere, and there are expectations that the OBR will lower its economic growth expectations.

That means Reeves is still likely to be raising taxes or cutting spending in her budget in the autumn in order to remain on track to meet her fiscal rules and avoid unsettling financial markets.

In July alone, the government borrowed 1.1 billion pounds ($1.48 billion), official data showed on Thursday.

The OBR had pencilled in an overshoot of 2.1 billion pounds for July. A Reuters poll of economists showed a median forecast of a 2.6 billion-pound deficit.

($1 = 0.7435 pounds)

https://www.reuters.com/world/uk/uk-borrowing-line-with-forecasts-challenges-await-reeves-2025-08-21/