The challenge facing Chancellor Rachel Reeves ahead of her first Budget has been laid bare after figures revealed government borrowing in the financial year so far has surged past official forecasts
Figures this morning from the Office of National Statistics said that public sector net borrowing in the first half of the financial year stood at £79.6 billion, £1.2 billion higher than a year earlier and £6.7 billion higher than previous forecasts and a figure only outstripped during the pandemic
Jessica Barnaby, ONS deputy director for public sector finances, said: “While tax revenue increased, this was outweighed by increased spending, partly due to higher debt interest and public sector pay rises.”
Treasury Chief Secretary Darren Jones to defended the pay increases for public sector workers while at the same time saying that the state of the public finances meant there would be “difficult decisions” in the October 30 Budget.
