𝓤𝓷𝓲𝓽𝓮𝓭 𝓝𝓮𝔀𝓼

The government borrowed more than expected in June, a total of £20.7bn and the second-highest level for this month on record.

It is estimated that the chancellor’s £9.9bn headroom from the spring statement has become a deficit of £12-15bn now, with some experts suggesting Rachel Reeves will need to find as much as £20bn by the time the Budget rolls around in autumn.

Darren Jones, chief secretary to the Treasury, said: “We are committed to tough fiscal rules, so we do not borrow for day-to-day spending and get debt down as a share of our economy.”

The government’s stealth taxes are what have prompted the additional income, says Shaun Moore, tax and financial planning expert at Quilter.

Stealth taxes are often seen when no extra taxes are placed but thresholds from one band to the next remain in place, meaning people naturally gravitate into the next (higher) tax rates simply through getting a raise, a new job, the effects of inflation and wage growth and so on.

“The latest HMRC tax take data lays bare the impact of the government’s stealth tax strategy – and while it is lucrative in some areas, it is far from universally effective,” he said.

“PAYE income tax and National Insurance contributions for April to June 2025 hit £120.8 billion, up £9.6 billion year-on-year. With income tax thresholds frozen, workers are seeing more of their earnings swallowed by the tax system. Meanwhile, higher employer NICs signal a clear shift in the burden toward businesses.”

Data released this morning by HMRC shows an uplift of £9.4bn compared to a year ago, for April to June tax take across income tax, National Insurance Contributions and capital gains tax.

Total tax receipts for the period were £209.6bn, which is up £11.7bn from a year ago for the same period.

As you can see, most of that is in the income tax and NICs section – though VAT take also saw a rise of £1.2bn.

Alcohol duties were 11 per cent lower, however.

The FCA’s rule changes will mean homeowners have far more choice and chance of saving money when it comes to changing mortgage deals, says Paul Matthews, senior director of risk at financial services firm Broadstone.

He said: “The FCA is taking significant steps to make it easier for consumers to make changes to their mortgages and get better support on their available options. The easing of regulation will allow lenders greater flexibility to innovate in the market and provider homeowners with more choice.

“Mortgage lenders operate in a highly regulated environment and so these latest reforms should support more flexible home ownership with minimal additional risk. Lenders will need to ensure their risk management and modelling framework is robust so they can continue to spot those consumers who need advice or other support.”

Liz Kendall, the work and pensions secretary, said on Monday that almost half of the working age population “isn’t saving anything for their retirement at all”. She has revived the pensions commission, which last met in 2006, in a bid to determine how best to help workers after experts warned that people looking to retire in 2050 are on course to receive £800 per year less than current pensioners.

The scale of the issue cannot be underestimated.

The FTSE 100 had something of a rollercoaster on Monday but ended the day 0.23 per cent up.

That put it back above 9,000 points having breached that level last week a couple of times.

Record highs in stock market indices have been a regular theme of late – miners in particular helped the surge yesterday.

The Financial Conduct Authority has announced rule changes effective immediately regarding mortgages.

Among those, the FCA say it will mean people:

• Find it easier to reduce their mortgage term, helping to lower the total cost of borrowing and reduce the risk of repayment extending into retirement.
• More easily remortgage with a new lender, helping them access cheaper products.
• Be able to discuss options with their mortgage provider and get advice when they need it.

These chances are to “help people navigate their financial lives and support growth by ensuring more people can benefit from choice in the mortgage market and the security of homeownership.”

Good morning and welcome to The Independent’s live business coverage on Tuesday.

Coming up today, the usual mix of stock markets, mortgages, money, companies and more.