Published • loading... • Updated
UK borrowing and £3 trillion debt herald tough budget for Healey
Borrowing came in £1.9 billion above the Office for Budget Responsibility forecast as higher debt interest costs and spending pushed up the deficit.
- 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
18 Articles
18 Articles
Coverage Details
Total News Sources18
Leaning Left2Leaning Right4Center7Last UpdatedBias Distribution54% Center
Bias Distribution
- 54% of the sources are Center
54% Center
15%
C 54%
R 31%
Factuality
To view factuality data please Upgrade to Premium
