Published • loading... • Updated
Government borrowing rises above forecasts to £24.5bn ahead of Budget
Higher debt interest and social benefit spending pushed borrowing £1.9 billion above forecast, leaving the Chancellor with less fiscal room before next week’s Budget.
- On Wednesday, official data showed UK government borrowing reached £24.5 billion in September, pushing public sector debt above £3 trillion . Finance Minister John Healey faces this challenge ahead of his first budget next week.
- Rising debt interest costs contributed to the increase, with central government debt interest payable hitting £10.9 billion in September, a £1.6 billion rise. The six-month shortfall stands at £97.8 billion, exceeding the £91.8 billion forecast by the Office for Budget Responsibility.
- Economists had predicted borrowing of £24.1 billion, meaning actual figures were £1.9 billion higher. The Office for National Statistics noted that as a proportion of the economy, debt remains lower than a year ago.
- To meet fiscal rules, Healey is expected to raise taxes on banks during his October 28 budget. Analysts warn that "you won't grow the economy just by spending more," as constraints tighten on public finances.
- Critics warn against using an "accounting trick" to ramp up borrowing as nervous bond markets scrutinize government spending. Healey faces pressure to maintain fiscal headroom while higher debt costs weigh on public finances.
Insights by Ground AI
36 Articles
36 Articles
For the first time in September, British public debt exceeded £3 trillion ($4 trillion), according to data from the National Statistical Office (ONS) of the country.
Inflation in Britain rose to 3.5% in September, exceeding expectations, while government borrowing amounted to £24.5 billion and public debt exceeded 3 trillion, just before the balance sheet was presented amid price and interest pressures.
UK national debt breaks £3trillion barrier for first time as borrowing crisis deepens
UK national debt breaks £3trillion barrier for first time as borrowing crisis deepens . Britain's national debt has broken through the £3trillion barrier for the first time, according to figures published today by the Office for National Statistics
·London, United Kingdom
Read Full Article
Coverage Details
Total News Sources36
Leaning Left3Leaning Right6Center9Last UpdatedBias Distribution50% Center
Bias Distribution
- 50% of the sources are Center
50% Center
L 17%
C 50%
R 33%
Factuality
To view factuality data please Upgrade to Premium
