Government borrowing increased than anticipated in October | EUROtoday

Government borrowing was a lot increased than anticipated in October, official figures present.

Borrowing – the distinction between spending and tax take – was £17.4bn final month, the second highest October determine since month-to-month data started in 1993.

The borrowing figures are the primary to be launched since Chancellor Rachel Reeves’ first Budget final month.

The Budget is ready to extend authorities spending by nearly £70bn a yr over the subsequent 5 years, with half funded via increased taxes and the remaining coming via increased borrowing.

Jessica Barnaby, deputy director for public sector funds on the Office for National Statistics (ONS), which produced the figures, mentioned: “Despite the cut in the main rates of National Insurance earlier in 2024, total receipts rose on last year.

“However, with spending on public providers, advantages and debt curiosity prices all up on final yr, expenditure rose quicker than income general.”

The ONS figures showed that interest payments on government debt hit £9.1bn last month, the highest October figure since monthly records began in 1997.

Borrowing in the financial year to October has now reached £96.6bn, which is £1.1bn more than at the same point last year.

Chief Secretary to the Treasury Darren Jones said again that the Labour government had inherited a difficult economic situation following the General Election.

“At the Budget we addressed this, fixing the foundations and placing public funds on a sustainable footing to rebuild the nation,” he mentioned.

“This authorities won’t ever play quick and free with the general public funds. Our new sturdy fiscal guidelines will ship stability by getting debt down whereas prioritising funding to ship progress.”