UK government borrows more than expected in setback before budget

"The Office for National Statistics said the government borrowed 17.4bn last month. That was lower than the same month last year, but still marked the third highest October deficit in the public finances on record. It is also higher than the 15bn City economists had forecast. In the fiscal year so far, borrowing is running at 116.8bn 8.4% higher than the same period in 2024, the ONS added, underlining the challenge facing Reeves in balancing the books."

"The UK government borrowed more than expected in October, official figures show, in the final snapshot of the public finances before Rachel Reeves's crunch budget. The chancellor will deliver her second budget next Wednesday against a difficult political background, after the Treasury floated and then ditched plans to raise income tax. She is expected to raise taxes significantly, in response to a downgrade in economic forecasts from the Office for Budget Responsibility."

The UK government borrowed 17.4bn in October, a figure lower than the same month last year but the third highest October deficit on record. October borrowing exceeded the 15bn forecast by City economists. Fiscal-year borrowing is 116.8bn, 8.4% higher than the same period in 2024, indicating worsening public finances. The Office for National Statistics reported these figures, highlighting pressure on the budget. The chancellor will deliver a second budget next Wednesday amid political difficulties after the Treasury briefly proposed and then abandoned income tax rises. Significant tax increases are expected in response to downgraded OBR economic forecasts.

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