Core Viewpoint - The UK government borrowing has significantly exceeded expectations due to soaring debt interest payments, putting pressure on the new Chancellor Reeves to consider tax increases to address the fiscal shortfall [1] Group 1: Government Borrowing - In June, the government borrowing reached £20.7 billion (approximately $27.9 billion), nearly 20% higher than the £17.5 billion anticipated by economists [1] - Cumulative borrowing for the first three months of the fiscal year totaled £57.8 billion, an increase of about £7.5 billion compared to the same period last year, aligning with the Office for Budget Responsibility's March forecast [1] Group 2: Debt Interest Payments - The surge in debt interest payments is the primary driver of the increased deficit, with June's interest payments amounting to £16.4 billion, marking the third-highest monthly figure in history [1] - The rise in interest payments is largely attributed to the rebound in inflation in April, which has increased the repayment costs of bonds linked to the Retail Price Index (RPI), accounting for a quarter of the UK's total debt [1]