"October's disappointing public finances figures underline the fiscal challenge that the chancellor still faces," said Alex Kerr, UK economist at Capital Economics.
"Despite the cut in the main rates of National Insurance earlier in 2024, total receipts rose on last year. However, with spending on public services, benefits and debt interest costs all up on last year, expenditure rose faster than revenue overall," stated Jessica Barnaby, deputy director for public sector finances at the ONS.
"Government spending on pay was up 2.2bn from a year earlier, reflecting some of the impact of the latest public sector pay deals," according to the ONS figures.
"The Budget is set to increase government spending by almost 70bn a year over the next five years, with half funded through higher taxes and the rest coming through higher borrowing," noted the Office for Budget Responsibility.
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