Unexpected UK borrowing surge adds to pre-Budget pressure on chancellor
The shortfall was £8.1 billion above the Office for Budget Responsibility forecast as higher inflation lifted debt interest and welfare spending.
- The ONS reported public sector borrowing reached £18.3 billion in August, marking the second-highest level on record and exceeding official forecasts by £3.5 billion.
- Central Government debt interest payments hit £8.8 billion, the highest recorded for August, driven by inflation-linked bond costs and higher spending on public services.
- The cumulative deficit from April-August stands at £77.3 billion, significantly exceeding the OBR forecast of £47.1 billion by £8.1 billion.
- Chancellor John Healey faces mounting fiscal constraints as debt interest costs squeeze headroom ahead of delivering his first autumn Budget on Wednesday 28 October.
- Chief Secretary to the Treasury Emma Reynolds stated the Government remains committed to "fiscal discipline," maintaining a buffer against uncertainty while taking difficult decisions on spending.
33 Articles
33 Articles
UK borrowing overshoot darkens backdrop for UK budget
Britain's government borrowed more than expected in August, pushing the deficit for the financial year so far further above official forecasts and adding to a tough backdrop for finance minister John Healey ahead of his first budget.
Economy alert: Borrowing costs SURGE to £18.3bn as John Healey trapped in 'Burnham fiscal bind'
Government borrowing surged to £18.3billion last month, according to the latest figures from the Office for National Statistics (ONS).This overshoots the Office for Budget Responsibility's (OBR) projection by £3.5billion and heaps further pressure on Chancellor John Healey ahead of his October Budget.August's figure came in £2.9billion higher than the same month in 2025, driven by expenditure growing at a faster pace than tax receipts.The City h…
UK borrowing overshoot darkens backdrop for Healey's budget
Britain's government borrowed more than expected in August, pushing the deficit for the financial year so far further above official forecasts and adding to a tough backdrop for finance minister John Healey ahead of his first budget.
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