The UK's government borrowing hit £3.1 billion in July, the highest for the month since 2021, as public services and benefits costs continue to surge.
The increase in borrowing was driven by rising costs in public services, leading to questions about forthcoming tax and spending decisions in the autumn Budget.
According to Jessica Barnaby from the ONS, while income tax receipts grew strongly, the rising costs of public services offset that, necessitating higher borrowing.
Economists suggest that current borrowing trends indicate public spending has outpaced Budget forecasts, prompting potential tax increases and more borrowing in the medium term.
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