Good morning.
A record interest bill pushed the budget deficit to £22.9 billion in June, limiting the next prime minister’s fiscal power as borrowing for the month hit a non-Covid high.
Debt interest payments, which are pushed up by inflation on the huge stock of index-linked government bonds, hit an all-time high of £19.4 billion in worse-than-expected figures.
Economists said the deterioration of public finances would “limit the next prime minister’s ability to deliver more relief for households”.
However, inflation and Rishi Sunak’s raid also increased tax receipts by £8bn.
5 things to start your day with
1) Gas rationing won’t save Europe from winter crisis Putin’s desire to weaponize energy supplies means EU will struggle to fill storage
2) Green energy shift gives China ‘leverage’ over UK, Lords warn Beijing’s overreliance on critical minerals market is ‘national security concern’
3) Guardian editor handed £150,000 pay rise. Catherine Wiener’s basic pay rises 42% despite newspaper criticism of ‘profiteering bosses’
4) Robot camera deal with China blocked on first use of new national security law. The University of Manchester cannot share technology used in children’s toys, drones and other surveillance equipment
5) Gatwick hires 400 security staff to deal with recruitment chaos. The hiring is aimed at easing queues as the summer school holidays begin
What happened in one night
Shares in Hong Kong opened slightly lower this morning, with the Hang Seng index down 0.4%.
The Shanghai Composite index fell 0.2 percent, while the Shenzhen Composite index on China’s second bourse also fell 0.2 percent.
Tokyo stocks also opened lower, with the Nikkei 225 down 0.04%
It’s due today
- Economy: Interest Rate Decision (EU), GfK Consumer Confidence (UK), Initial Jobless Claims (US), Philadelphia Fed Manufacturing Survey (US)
- Corporate: IG Group (full year results); Howden Joinery, Moneysupermarket Group, Ocado (Intermediate); 3i Group, AJ Bell, Anglo American, Brewin Dolphin, Britvic, Close Brothers, Diploma, Dunelm, Euromoney Institutional Investor, Frasers Group, Intermediate Capital Group, QinetiQ, SSE, Workspace Group (trading update)
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