The UK underlying current-account deficit, excluding precious metals, narrowed to £11.3 billion in Q2 2026, equal to 1.4% of GDP, from £14.3 billion in Q1.
VAT on household electricity will fall to 0% from 1 October 2026; the government estimates an average household saving of about £45 a year, a 2026-27 cost of around £850 million and a direct 0.10 percentage-point reduction in CPI inflation.
UK public sector net borrowing was £1.8 billion in July 2026, while public sector net debt stood at £2,984.9 billion, or 94.1% of GDP, at the end of the month.