Government borrowing for October higher than expected

Getty ImagesUK authorities borrowing was greater than £2bn increased than anticipated in October, based on the most recent official figures.Borrowing – the distinction between public spending and tax earnings – was £17.4bn in October, down from £19.2bn from the identical month final yr, the Workplace for Nationwide Statistics (ONS) stated.Analysts had anticipated authorities borrowing to be £15bn in October, barely increased than the Workplace for Price range Accountability’s (OBR) March forecast of £14.4bn.ONS chief economist Grant Fitzner stated whereas borrowing was down in comparison with the identical month final yr, it was “nonetheless the third-highest October determine on report in money phrases”.”Whereas spending on public providers and advantages have been each up on October final yr, this was greater than offset by elevated receipts from taxes and Nationwide Insurance coverage contributions,” he stated.Within the monetary yr to October, borrowing was £116.8bn, which was £9bn greater than the identical seven-month interval in 2024. It was the second-highest borrowing for April to October since information started in 1993, after 2020.The borrowing figures come lower than per week earlier than Chancellor Rachel Reeves unveils her Price range, and she or he has beforehand confirmed each tax rises and spending cuts are on the desk.Chief Secretary to the Treasury James Murray stated in the meanwhile £1 of each £10 in taxpayer cash was spent on curiosity on nationwide debt.”That cash ought to be going to our colleges, hospitals, police and armed forces,” he stated.”That’s the reason we’re set to ship the biggest main deficit discount in each the G7 and G20 over the following 5 years – to get borrowing prices down.”Shadow chancellor Sir Mel Stride stated borrowing up to now this monetary yr had been the very best on report in addition to the pandemic.”If Labour had any spine, they’d management spending to keep away from tax rises subsequent week,” he stated.