UK Government Borrowing Reaches £17.4 Billion in October

UK government borrowing surged to £17.4 billion in October, the second highest level for that month since records began in 1993, and significantly above economists' forecasts of £12.3 billion. This increase, attributed to rising public sector pay and soaring debt interest costs, marked a £1.6 billion rise compared to October 2023. Central government debt interest payments reached a record £9.1 billion, exacerbated by higher interest rates. The total public sector net debt now stands at 97.5% of GDP, the highest since the early 1960s. Despite a rise in tax receipts, spending on services and debt repayments outpaced revenue growth, limiting the government's financial flexibility. Chancellor Rachel Reeves faces mounting pressure to stabilize public finances amidst these challenging economic conditions.