Highest government borrowing in August for five years

"Borrowing - the difference between public spending and tax income - was 18bn in August, the Office for National Statistics (ONS) said, which was higher than analysts had expected. The UK statistics body said that while tax and National Insurance receipts increased, they were outstripped by higher spending on public services, benefits and debt interest."

"This Government has a plan to bring down borrowing because taxpayer money should be spent on the country's priorities, not on debt interest. Our focus is on economic stability, fiscal responsibility, ripping up needless red tape, tearing out waste from our public services, driving forward reforms, and putting more money in working people's pockets."

"highlight the deteriorating nature of the public finances even though the economy hasn't been terribly weak"

UK government borrowing was 18bn in August, the highest August in five years, as higher spending outpaced rising tax and National Insurance receipts. Borrowing over the first five months of the financial year reached 83.8bn, 16.2bn higher than the same period last year and above the Office for Budget Responsibility's March forecast of 72.4bn. Interest payments on debt rose by 1.9bn to 8.4bn, partly driven by inflation. Welfare spending increased by 1.1bn to 27.3bn due to inflation-linked benefit rises and higher State Pension payments. Economists say the weaker public finances raise pressure for revenue measures in the November Budget.

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