Chancellor Rachel Reeves has been dealt a further setback after official figures showed the highest August borrowing for five years, with warnings mounting that tax rises at the autumn Budget now look “inevitable”. Latest figures from the Office for National Statistics (ONS) showed far higher-than-expected borrowing last month, at £18 billion, which was £3.5 billion more than in August 2024.
00:00Hello, I'm Greg Wright of the Yorkshire Post. The Chancellor, Rachel Reeves, has been dealt a setback after official figures showed the highest August borrowing for five years, with warnings mounting that tax rises in the budget now seem inevitable.
00:16Latest figures from the ONS showed far higher than expected borrowing last month at £18bn, which was £3.5bn more than in August 2024. Soaring interest and government debt, added to higher spending on benefits and public services, offset any boost from the National Insurance Contributions increase, according to the ONS.
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