UK government borrowing in August exceeded expectations, as reported by the Office for National Statistics (ONS). The borrowing amount reached £18 billion for the month, marking an increase of £3.5 billion compared to August of the previous year and representing the highest level of borrowing for that month in five years.
According to the ONS, although tax and National Insurance receipts showed an uptick, these gains were overshadowed by a rise in public spending. This increase in expenditure was driven by higher costs associated with public services, benefits, and interest on debt.
Furthermore, cumulative borrowing for the first five months of the financial year has totaled £83.8 billion, compared to £67.6 billion during the same timeframe last year, indicating a year-over-year increase of £16.2 billion. This trend raises questions about the sustainability of government finances and the potential implications for future fiscal policy.
Source: https://www.bbc.com/news/articles/cly9m4lqznro?at_medium=RSS&at_campaign=rss