UK public borrowing as Budget looms

UK public sector borrowing rose to £8.0 billion in the month of October, according to official data, up to £500 m from the previous year.

The figure comes a day before the Budget, and the monthly deficit was larger than economists had expected.

The higher cost of debt linked to the the UNITED kingdom, higher inflation, since the Brexit vote, have been a factor in the deficit.

The Office for National Statistics (ONS) said borrowing for the financial year to date has reached £38.5 billion, down £4.1 billion in the same period last year.

That figure suggests that borrowing is on track to come in below the Office for Budget Responsibility forecast of £58.3 billion for the entire financial year.

Chancellor Philip Hammond will present his latest Budget on Wednesday. You must balance calls for more public spending against the prospect of weaker economic growth, which could affect tax revenues.

Announcing the latest borrowing figures, the ONS said: “In the month of October 2017, the debt, the interest paid by central government was £6 billion, and this represents the highest October payment of interest on the record remains less than the highest recorded monthly payment of £7.2 billion in the month of April 2017.

“This increase in the debt interest payment is largely due to movements in the level of the Retail Prices Index”.

The rate of inflation measured by the Retail Prices Index stood at 4% in the month of October.