UK reports unexpected deficit of £1.8bn as John Healey prepares for first budget

July data shows total public debt was 2.98tn, or 94% of GDP - up 96bn on a year earlier

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The UK government ran a larger than expected 1.8bn deficit in July, underlining the challenges facing the chancellor, John Healey, as he draws up his first budget.

City economists had expected a shortfall of zero for July, a month when Treasury receipts tend to be swollen by self-assessment income tax payments.