Government borrowing rises by a fifth to £18bn in August
Summary
The UK government borrowed £18.3 billion in August, which is about 20% more than last year. This rise in borrowing was mainly due to higher inflation, which increased government spending on services and benefits.Key Facts
- Government borrowing was £18.3 billion in August, almost a fifth higher than in August last year.
- Higher inflation caused prices for petrol and diesel to rise, increasing government spending.
- Tax income rose compared to last year, but spending grew even more.
- Interest costs on government debt reached £8.8 billion, the highest August amount since 1997.
- Experts warn that rising borrowing costs and inflation make managing the budget harder.
- Government officials stress the need for fiscal discipline to manage debt and fund public services.
- The upcoming Budget on 28 October will be challenging due to unexpected higher borrowing.
- Economic weakness may lead to continued borrowing above forecasts.
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