19 C
London
Tuesday, July 29, 2025

Treasury borrows greater than anticipated in blow to Reeves’s spending plans

BusinessTreasury borrows greater than anticipated in blow to Reeves’s spending plans

Treasury borrowing has already shot previous official forecasts made within the Price range in a blow to Rachel Reeves’s plans to ramp up spending.

Britain has already borrowed £4.1bn extra to this point this monetary yr than was projected by the Workplace for Price range Accountability (OBR) in its up to date estimates in October, official figures present.

Public sector internet borrowing excluding banks climbed to £129.9bn within the eight months to December, in comparison with the OBR’s forecast that the determine would stand at £125.9bn.

It comes after the Treasury borrowed £17.8bn final month, in line with the Workplace for Nationwide Statistics (ONS), which was greater than the £14.2bn analysts had anticipated.

The rise in debt is unwelcome for the Chancellor, who confronted questions on her potential to fulfill her fiscal guidelines following a surge in borrowing prices at first of the yr amid a sell-off in bond markets.

Ms Reeves outlined plans within the Price range to extend public spending by £70bn a yr over the following 5 years, paid for by greater taxes and borrowing.

Learn the most recent updates beneath.

Check out our other content

Most Popular Articles