Government borrowing above expectations and highest since pandemic as public sector pay rose

Business

Government borrowing rose to the highest amount since the pandemic in July, official figures show.

Not since 2021 has there been a July with such high borrowing, according to data from the Office for National Statistics (ONS).

It means that there was a £3.1bn difference between what the government took in from things like taxes and how much was spent on public sector services.

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Compared to the same month last year it’s £1.8bn higher.

The sums are also higher than expected when looked at across a four-month period, despite being £500m below the same time in 2023.

Independent forecasters the Office for Budget Responsibility (OBR) expected borrowing to be £4.7bn less and come in at £46.6bn.

More on Debt

Despite better-than-expected economic growth in recent weeks Chancellor Rachel Reeves is widely expected to raise some taxes in her first October budget having said there is a £22bn black hole in the public finances.

Today’s figures are likely to add to that expectation.

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