Public debt is now the same size as the British economy for the first time since the 1960s.
Figures released this morning by the Office for National Statistics showed Public sector net debt excluding public sector banks was £2,768.0 billion at the end of August 2024, provisionally estimated to be around 100.0% of the UK’s annual gross domestic product.
The government borrowed £13.7bn in August, up by £2bn on the figure expected by the Office for Budget Responsibility (OBR) meaning that borrowing for the current financial year, at £64.1bn, was £6bn higher than the OBR had forecast.
ONS chief economist Grant Fitzner said: “Borrowing was up by over £3bn last month on 2023’s figure, and was the third highest August borrowing on record.
“Central government tax receipts grew strongly, but this was outweighed by higher expenditure, largely driven by benefits uprating and higher spending on public services due to increased running costs and pay.”
Meanwhile The Treasury has been given a £10bn boost due to a Bank of England decision to slow the sale of government bonds.
Labour MPs are calling for the extra cash to be used to delay scrapping pensioners’ winter fuel payments and cancel other spending cuts being prepared for the budget next month.
