Government borrowing above expectations and highest since pandemic

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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