Britain’s public sector net borrowing fell to £1.1 billion in July, well below economists’ expectations of about £2 billion and a fraction of the £20.7 billion recorded a year earlier, the Office for National Statistics said on Thursday. The figure is the lowest July outturn in three years. The improvement was fuelled by a £4.5 billion jump in self-assessed income-tax payments and higher National Insurance contributions. Excluding public-sector banks, the public sector recorded a £3.0 billion cash surplus, while the central government’s net cash requirement dropped to £6.3 billion from £15.8 billion in July 2024. For the financial year to date, borrowing totals roughly £60 billion—about £6.7 billion more than in the same period last year but broadly in line with Office for Budget Responsibility projections. Economists said the stronger-than-expected July data does little to ease pressure on Chancellor Rachel Reeves ahead of the autumn Budget, when she must show how she will meet her pledge to have debt falling as a share of GDP by 2029-30.