A record interest bill pushed the budget deficit to 22.9 billion pounds in June, limiting the next prime minister’s fiscal strength as borrowing for the month hit its highest level outside the Covid era. Debt interest payments, pushed up by inflation on the huge stock of index-linked government bonds, hit a record high of £19.4bn in worse-than-expected figures. Economists said deteriorating public finances would “limit the next prime minister’s ability to deliver more relief to households”. However, inflation and the Rishi Sunak raid also drove tax receipts £8bn higher.

5 things to start your day

  1. Gas allocation won’t save Europe from a winter crisis Putin’s willingness to rig energy supplies means the EU will struggle to fill storage
  2. Green energy shift gives China ‘leverage’ over Britain, Lords warn Overreliance on Beijing’s crucial minerals market is a ‘national security concern’
  3. Guardian editor given £150,000 pay rise Katharine Viner’s basic pay rises 42% despite paper’s criticism of ‘profiteering bosses’
  4. Robot camera deal with China blocked at first use of new national security law Manchester University not allowed to share technology used in children’s toys, drones and other surveillance equipment
  5. Gatwick hires 400 security staff to deal with travel chaos Hiring spree aims to ease queues as summer school holidays begin

What happened in the night

Hong Kong shares opened slightly lower this morning, with the Hang Seng index down 0.4%. The Shanghai Composite fell 0.2 percent while the Shenzhen index on China’s second exchange also fell 0.2 percent. Tokyo stocks also opened lower, with the Nikkei 225 down 0.04%

It’s coming today

Economics: Interest Rate Decision (EU), GfK Consumer Confidence (UK), Initial Jobless Claims (US), Philadelphia Fed Manufacturing Survey (US) Corporate: IG Group (full year results). Howden Joinery, Moneysupermarket Group, Ocado (interim); 3i Group, AJ Bell, Anglo American, Brewin Dolphin, Britvic, Close Brothers, Diploma, Dunelm, Euromoney Institutional Investor, Frasers Group, Intermediate Capital Group, QinetiQ, SSE, Workspace Group (transaction update)