Last month, the UK’s government borrowing reached its third-highest September since records started being kept in 1993, according to official statistics. The Office for National Statistics (ONS) reported that the amount of money borrowed rose to £16.6bn during that period, £2.1bn more than September last year. Though this figure is below the predicted £17.5bn, it is higher than previously predicted by the Office for Budget Responsibility (OBR), which closely monitors the UK government’s spending and performance.
Jessica Barnaby, deputy director for public sector finance at the ONS, attributed the government’s higher spending to greater debt interest and public sector pay hikes. This has caused an increase in the UK’s national debt, which now equates to 98.5% of its economic output, a marginal decrease from the previous month but still reminiscent of levels last seen in the early 1960s.
The crisis of government spending is believed to have been inherited by the newly-elected Labour government. Chief Treasury Secretary Darren Jones referred to the situation as a ‘black hole’ that requires the making of difficult decisions in the upcoming annual financial statement known as the Budget.
This month’s official figures conclude the UK’s spending over the last month. As a result, the Treasury is expected to tackle its own self-imposed debt rules in its annual Budget, to be announced later this month.
Even though the current borrowing estimate is below the predicted amount, it signifies the UK’s ongoing financial woes with high level debts, with no immediate relief in sight
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