From Morningstar: 2024-10-22 07:58:00

UK public sector borrowing ballooned to £16.61 billion in September, marking the third highest September borrowing on record. Interest payable on government debt surged to £5.6 billion in September 2024, up from £900 million in the same month last year due to RPI movements in 2023.

Public sector net debt stood at 98.5% of GDP in September, slightly lower than August’s 98.8%, but higher than the 86.2% recorded in September 2023. Excluding the Bank of England, debt was 91.2% of GDP, a 5.0 percentage point increase from the previous year.

UK Chancellor Rachel Reeves confirmed unity within the Cabinet regarding government spending plans. The Chancellor had been negotiating with ministers for a £40 billion tax rise and spending cut package. Reeves emphasized the importance of achieving departmental budget settlements to stabilize public finances left by the previous government.

Despite reports of concerns from several ministers, Chancellor Reeves reassured that the Cabinet had reached a final agreement on budget settlements, demonstrating the government’s commitment to repairing public finances. Ministers expressed unease about the scale of cuts required to deliver Labour’s promises amid the £40 billion deficit.



Read more at Morningstar: UK Public Borrowing Spikes Ahead of Budget