Based on data from the Office for National Statistics (ONS), last month’s borrowing was the third-highest September borrowing on record, only surpassed by 2020 and 2021.
Even while tax revenue climbed, spending rose more than revenue, which the ONS claimed was partially caused by rising debt interest rates and wage increases in the public sector.
According to data, spending in September was £2.1 billion more than it was in the same month last year.
Since Labour took office in July, public sector employees, such as teachers and young physicians, have accepted salary increases, while the Bank of England’s high interest rates.
According to economists surveyed by the news agency Reuters, public sector borrowing was £16.6 billion instead of the £17.5 billion that they had predicted. Public sector banks’ borrowing is not included in the total.
However, the Office for Budget Responsibility (OBR) had not believed that such an increase was likely. The figures were £1.5 billion higher than anticipated.
