The government’s borrowing bill rose more than expected before Labour’s budget last month on the back of spending on public sector pay and rising debt interest costs.
Official figures show that a measure of public sector net borrowing hit £17.4 billion in October, higher than estimates of £12.3 billion from economists. The Office for Budget Responsibility, the government’s independent fiscal watchdog, had forecast £16.1 billion.
The borrowing total was the second-highest figure for October ever recorded, according to the Office for National Statistics (ONS), which calculated the national debt ratio at 97.5 per cent of GDP.
Government borrowing, which is the difference between state spending and receipts, was pushed up by higher interest rate payments on the national debt caused by a rise in the