UK borrowing blues

PUBLIC borrowing climbed to £6.8bn last month in a blow to Philip Hammond as he prepares for the Budget.

That was £2.4bn higher than the same month last year, and much larger than the £4.3bn economists were expecting.

It bucks a trend which has seen borrowing come in far better than expected this year, giving the Chancellor breathing space in his autumn Budget ahead of Brexit, and meaning further cuts and tax rises are less likely.

But despite this blip, the Uk has borrowed £17.8bn so far this financial year, or £7.8bn less than the same period in 2017. This is the lowest figure since 2002 and suggests the Treasury is on track to meet its promises for eliminating Britain’s budget deficit.

If it continues, the Government should spend considerably less than predicted by the independent Office for Budget Responsibility. Barret kupelian, of accountant PwC, said: ‘This suggests that the Chancellor will have some wiggle room in his Budget, particularly with respect to additional health spending.’

a Treasury spokesman said: ‘we need to keep up the work to get debt falling, as gross debt interest costs to more than the police and armed forces combined.’