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UK government borrowing lower than expected in July

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UK government borrowing lower than expected in July


Nick Edser

Business reporter, BBC News

Getty Images Two women and a man who is pushing a buggy with a little girl in it along a street in London with a bus in the backgroundGetty Images

UK government borrowing was lower than expected in July, following a rise in tax and National Insurance receipts.

Borrowing – the difference between public spending and tax income – was £1.1bn in July, which was £2.3bn less than the same month last year, the Office for National Statistics (ONS) said.

It was the lowest July figure for three years, the ONS said, and was helped by a rise in self-assessed income tax payments.

Despite the lower-than-expected figure, analysts said the chancellor was still likely to have to raise taxes in the autumn Budget to meet her tax and spending rules.

Borrowing over the first four months of the financial year has now reached £60bn, the ONS said, which is up £6.7bn from the same period last year.

That total for the year so far is in line with what the Office for Budget Responsibility (OBR), the official independent forecaster, had predicted in March.

July saw income tax receipts rise by £4.5bn, the ONS said, and there was also an increase from National Insurance (NI) contributions. The rate of employers’ NI contributions was increased by the government in April.

Speaking to the BBC’s Today programme, Paul Dales, chief UK economist at Capital Economics, said the latest figures did not change the “predicament” Chancellor Rachel Reeves faces over what she will do in the Budget.

“We think she’s on track to miss her fiscal rule by something like £17bn which means she’ll need to raise that amount of money, or if she wants the same buffer against the fiscal rule as back in March of £10bn she might have to raise something like £27bn in the Budget, which is quite a big task.”

A bar chart titled 'Government borrowing in July', showing the UK's public sector net borrowing, excluding public sector banks, from July 2023 to July 2025. In July 2023, public sector net borrowing stood at £2.5 billion. It then rose to £3.4 billion in July 2024, and then fell to £1.1 billion in July 2025. The source is the Office for National Statistics.

The chancellor is following two main self-imposed rules for government finances:

  • day-to-day government costs will be paid for by tax income, rather than borrowing
  • to get debt falling as a share of national income by the end of this parliament in 2029-30

Dennis Tatarkov, senior economist at KPMG UK, said the “longer-term picture for public finances remains challenging”.

“The coming Budget is likely to focus on addressing any potential shortfall against current fiscal targets, which we estimate at £26.2bn. However, the assessment of the shortfall crucially depends on changes to the OBR’s forecast.”

Darren Jones, Chief Secretary to the Treasury, said: “Far too much taxpayer money is spent on interest payments for the longstanding national debt.

“That’s why we’re driving down government borrowing over the course of the parliament – so working people don’t have to foot the bill and we can invest in better schools, hospitals, and services for working families.”



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Intellia Therapeutics says its Crispr-based treatment succeeds in pivotal trial

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Intellia Therapeutics says its Crispr-based treatment succeeds in pivotal trial


Intellia Therapeutics, building exterior and company sign, Cambridge, Massachusetts, USA.

Spencer Grant | Universal Images Group | Getty Images

Intellia Therapeutics said its Crispr-based treatment for a rare swelling condition met its goals in a late-stage trial, marking a milestone for the field of gene editing and putting the company on track to seek approval from the U.S. Food and Drug Administration.

The company’s treatment uses Nobel Prize-winning technology Crispr to edit DNA and turn off the gene that controls production of a peptide that’s overactive in people with hereditary angioedema, causing them to experience potentially life-threatening swelling attacks. Intellia’s treatment is administered once through an hourslong infusion, making the edits directly in the liver.

Intellia said the one-time treatment reduced attacks by 87% compared with a placebo, meeting the study’s main goal. Six months after treatment, 62% of patients were free from attacks and weren’t using other therapies, Intellia said.

The company described the safety and tolerability of the treatment as “favorable,” reporting the most common side effects were infusion-related reactions, headaches and fatigue. Analysts were closely watching safety in the trial since a patient in a separate trial of a different treatment from Intellia died. That patient developed a liver injury and ultimately died from septic shock following an ulcer, according to the company.

“When you think about where we started with Crispr, just 12 years ago with some of the fundamental insights, I think there was a lot of talk about what might be possible, and we’ve had reports along the way in terms of milestones, but this is the first Phase 3 data in any indication with in vivo Crispr where you’re actually changing a gene that causes disease,” said Intellia CEO John Leonard.

The only FDA-approved Crispr-based medicine comes from Vertex Pharmaceuticals. Called Casgevy, the gene editing is done outside the body, or ex vivo. The process requires collecting a person’s blood cells, making the edits outside the body, then reinfusing them back into a patient. Intellia’s treatment, meanwhile, makes the edits inside the body, or in vivo.

Intellia said it has started a rolling application with the FDA and plans to complete the filing in the second half of this year. The company expects to launch the treatment in the U.S. in the first half of next year, if it’s approved.

If approved, Intellia’s treatment, lonvoguran ziclumeran, will compete with about a dozen other chronic drugs for HAE. Despite the allure of a one-time treatment, genetic medicines haven’t always been a commercial successes. BioMarin withdrew its gene therapy for Hemophilia A because of weak sales, for example.

Leonard said there are important differences between the two, like the fact that BioMarin’s therapy faced questions about how long the effects would last. In contrast, he said Intellia hasn’t seen a single case in almost six years where the effects diminished over time.

Despite the results, he’s reluctant to call Intellia’s treatment a functional cure.

“I think this is a tipping point for the disease and tipping point for Crispr-based in vivo therapy where you can make a change [and] it’s permanent,” Leonard said. “And, as far as we can tell, we don’t have a single patient in this program or other program where there’s been any waning of the effect of what we did to the gene or the effect of what we’ve seen with the clinical aspects of the disease itself. So it’s pretty exciting.”

Clarification: This story has been updated to clarify that a patient in a separate trial of a different treatment from Intellia developed acute liver injury and ultimately died from septic shock following an ulcer.

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European flight prices are falling in short-term, Wizz Air boss says

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European flight prices are falling in short-term, Wizz Air boss says



While many airlines say they are raising prices due to high fuel costs, József Váradi says European airlines are trying to boost demand



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Claire’s closes all 154 stores in UK and Ireland with loss of 1,300 jobs

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Claire’s closes all 154 stores in UK and Ireland with loss of 1,300 jobs



All of the chain’s standalone stores have stopped trading in the UK and Ireland.



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