The British political landscape changes as the new Chancellor of the Exchequer takes over the "hot potato": fiscal borrowing exceeds expectations, and debt market pressures rise again.

According to the Zhixun Finance and Economics APP, data released by the UK Office for National Statistics (ONS) on July 21 showed that the UK public sector net borrowing reached 57.6 billion (approximately $77.5 billion) in the first three months of the 2026/27 fiscal year (April to June), which was 2.7 billion higher than the forecast of 3 billion made by the UK Office of Budget Responsibility (OBR) in March. Although the deficit in June alone decreased by one-third year-on-year to 16 billion, which was better than the economists' expected 17.8 billion, the cumulative deficit for the first quarter still exceeded official expectations, sounding the alarm for the new Chancellor of the Exchequer.