UK government borrowing reached £3.1 billion in July, exceeding forecasts by £3 billion and marking the highest July borrowing since 2021, according to the Office for National Statistics. This surge is attributed to increased public spending driven by rising social benefits and wages. Chancellor Rachel Reeves is preparing for her inaugural Budget amidst these challenging financial conditions, with plans to address a reported £22 billion shortfall left by the previous Conservative government. To remedy the situation, Ms. Reeves is considering tax hikes, including on inheritance and capital gains taxes, alongside cuts to public spending. Experts warn of a decade of economic stagnation and rising public debt, with the financial landscape further complicated by the need for affordable housing. The Chancellor's proposed rent increases are aimed at ensuring future investment in housing but have raised concerns over affordability for tenants.