UK borrowing rises to worse-than-expected 18bn in August

"The UK government borrowed more than expected last month, official figures show, adding to pressure on the Treasury in the run-up to the autumn budget. Figures from the Office for National Statistics (ONS) showed public sector net borrowing the difference between public spending and income rose to 18bn in August, 3.5bn more than in the same month a year earlier."

"The reading was above City predictions for a deficit of 12.75bn and forecasts from the Office for Budget Responsibility of 12.5bn. The chancellor, Rachel Reeves, is widely expected to present a package of tax rises in her 26 November budget to offset deteriorating economic forecasts and plug a spending deficit that some estimates say could be up to 40bn. The ONS borrowing figures come a day after the Bank of England voted to keep the base interest rate unchanged at 4%,"

Public sector net borrowing rose to 18bn in August, 3.5bn higher than in the same month a year earlier. The August figure exceeded City predictions of 12.75bn and the Office for Budget Responsibility forecast of 12.5bn. The larger-than-expected deficit increases pressure on the Treasury ahead of the autumn budget. Chancellor Rachel Reeves is widely expected to announce tax rises in the 26 November budget to address deteriorating economic forecasts and a potential spending shortfall that some estimates place at up to 40bn. The Bank of England kept the base interest rate at 4% while inflation was 3.8% year on year to August.

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