Financial News: UK Budget Deficit Overshoots Estimate

UK Budget Deficit Overshoots Estimate

(RTTNews) - The UK budget deficit surpassed the official estimate in the financial year to September, reaching the second highest level on record due to higher debt costs, data from the Office for National Statistics showed on Tuesday.

In the first half of the year, public sector net borrowing rose by GBP 11.5 billion from the last year to GBP 99.8 billion.

The borrowing reached the second-highest April to September level since monthly records began in 1993, after that of 2020. Moreover, this was above the Office for Budget Responsibility's estimate of GBP 92.6 billion.

In September alone, public sector net borrowing increased to GBP 20.2 billion from GBP 18.6 billion in the previous year. This was the highest September borrowing since 2020.

Data showed that current receipts grew 7.6 percent to GBP 523.7 billion. At GBP 557.2 billion, current expenditure was 9.3 percent more than in same period last year.

Within expenditure, interest payable on central government debt increased GBP 14.4 billion to GBP 59.5 billion.

At the end of September, public sector net debt excluding public sector banks reached 95.3 percent of gross domestic product, the ONS said.

Today's data poses a challenge for Chancellor Rachel Reeves, who is set to deliver the Autumn Budget on November 26. She is expected to lift taxes and reduce spending to achieve her fiscal goals.

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