The UK government borrowed less than expected in June, with public sector net borrowing reaching £16bn, £7.9bn less than in June 2025, according to the Office for National Statistics (ONS).
Job Vacancies Decline
Employers cut the number of job vacancies in June, with official figures showing vacancies fell to 712,000 – almost half the level in 2022 – as employers put off hiring new staff in the three months to May. Separate figures showed unemployment remained at 4.9% in May, unchanged from April.
Defence Shares Rise
Shares in defence companies rose sharply after Andy Burnham appointed John Healey as chancellor. Babcock International rose by as much as 7%, BAE Systems was up 3%, and Rolls-Royce increased nearly 2% on the FTSE 100.
Thames Water Rescue Bid
A group of investors pursuing a rescue bid for Thames Water offered the government a “golden share” to persuade Burnham not to nationalise the company. London & Valley Water (L&VW), a consortium of 100 institutional investors holding £17bn of the company’s £21bn debt, said they were working on a revised rescue package including the golden share, which would give the government a veto over important decisions and hostile takeovers.
