Budget deficit leaps as Brexit-fuelled inflation troubles Hammond

Government borrowing rises by more than expected to 6.9bn in June - almost 50% higher than in the same month last year

The government was forced to borrow more than expected in June after a jump in the UK's budget deficit to 6.9bn - almost 50% higher than the same month last year.

The sharp rise followed a spike in the cost of financing the UK's debt, a drop in corporation tax receipts and a larger than forecast contribution to the EU in June.

Related: The Tories have failed to fix the roof - and now storms are brewing | Larry Elliott