The UK government borrowed £18billion in August - the highest monthly total since 2020, new figures have revealed.
Data from the Office for National Statistics (ONS) published this morning show the amount borrowed in August exceeded the forecast £12.5billion, and was up £3.5billion on the same month in 2024.
The Times reports the government's spending on benefits and debt interest increased in August, cancelling out the rise in business payroll tax revenues generated thought the National Insurance Contributions shakeup which took effect in spring.
In the first five months of the current financial year, government borrowing has hit £83.8billion, exceeding the Office for Budget Responsibility (OBR) expectations by £11.4billion.
The data, The Times reports, raises the likelihood Rachel Reeves will have to increase taxes by tens of billions of pounds in her autumn budget on November 26.
Martin Beck, chief economist at WPI Strategy, said tax rises “look inevitable” in the circumstances.
He added: “Government borrowing in August came in far above expectations, underscoring the chancellor’s growing fiscal headaches ahead of November’s budget.”
FTSE100
The UK's flagship share index, the FTSE 100, was down 7 points at 9,224 shortly after opening this morning.
Brent crude oil futures were down 0.04% at $67.41 a barrel.
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