February's public finances data revealed the UK government borrowed £10.7 billion, significantly exceeding the £6.5 billion estimate from the Office for Budget Responsibility. This financial landscape has intensified pressures for action, as growth remains weaker and borrowing costs higher due to elevated interest rates. Total public sector net debt now stands at 95.5% of GDP, a level reminiscent of the early 1960s. Rachel Reeves is poised to announce further spending cuts to align with her fiscal rules, even as opinions within the government remain divided on the necessity of such measures.
February's public finances data, published on Friday, is only likely to make Rachel Reeves more convinced that she needs to take action at next Wednesday's spring statement.
The government borrowed 10.7bn in February, against the 6.5bn that the Office for Budget Responsibility had estimated, underscoring the need for immediate fiscal response.
Total public sector net debt stood at 95.5% of GDP in February, which is a level last seen in the early 1960s, rising higher than a year ago.
After Reeves set out spending plans, the OBR expected borrowing for the fiscal year to be 127.5bn, but data shows borrowing has already reached 132.2bn.
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