The UK Government announced today that its spending in June overshot expectations by 6.6Bn. Increased cost of services and interest payments are being blamed as the central reasons for the overspend. This overshoot further erodes the chancellors thin budget headroom and should the overspend continue into the remainder of the year, will turn into an increasingly large deficit, challenging the Labours pledge to not borrow to fund day to day spending. The overall picture of UK finances continues to suggest that the Chancellor will have to raise UK taxes to plug the fiscal hole at the next budget.