UK borrows less than expected in June; job vacancies fall to 712,000

UK government borrowing fell to £16bn in June, £7.9bn less than last year, as job vacancies dropped to 712,000 and unemployment held at 4.9%.

Capital Post 21/07/2026 18:44

UK borrows less than expected in June; job vacancies fall to 712,000 — UK borrows less than expected; job vacancies drop

The UK government borrowed £16bn in June, £7.9bn less than in June 2025, according to the Office for National Statistics. This provides a boost for Prime Minister Andy Burnham as he outlines plans to cut VAT on household electricity bills and promises a new economic direction.

Job vacancies fall sharply

Employers cut job vacancies to 712,000 in the three months to May, nearly half the level in 2022, highlighting the UK's fragile economic outlook amid the Middle East conflict. Unemployment remained at 4.9% in May, unchanged from April, underscoring the challenge for Burnham to lift living standards.

Defence shares rise after Healey appointment

Defence stocks rose sharply after John Healey was appointed chancellor. Babcock International rose 7%, BAE Systems 3%, and Rolls-Royce nearly 2% on the FTSE 100, reflecting investor hopes for increased military spending.

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Wide Pickt banner — collaborative shopping lists app for Telegram, phone mockup with grocery list

Thames Water investors offer 'golden share'

A consortium of investors, London & Valley Water, holding £17bn of Thames Water's £21bn debt, offered the government a golden share to avoid nationalisation. The share would give the government veto power over key decisions and hostile takeovers.