No Result
View All Result
  • About us
  • Contact us
  • Privacy Policy
  • Terms & Conditions
Smart Investment Today
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
  • News
  • Economy
  • Editor’s Pick
  • Investing
  • Stock
No Result
View All Result
Smart Investment Today
No Result
View All Result
Home Investing

UK borrowing surpasses forecasts as debt reaches 100% of GDP

by
September 20, 2024
in Investing
0
UK borrowing surpasses forecasts as debt reaches 100% of GDP
0
SHARES
2
VIEWS
Share on FacebookShare on Twitter

The UK’s borrowing bill once again exceeded expectations in August, adding pressure on Chancellor Rachel Reeves ahead of Labour’s first budget on 30 October.

Official data from the Office for National Statistics (ONS) revealed that public sector net borrowing hit £13.7 billion last month, well above the £11.2 billion forecast by the Office for Budget Responsibility (OBR). This pushed the UK’s debt-to-GDP ratio to 100 per cent, signalling a significant fiscal challenge for the government.

The higher borrowing figures were largely driven by increased spending on benefits, which were uprated in line with inflation, along with additional expenditure on government operations. Despite this, the cost of servicing the UK’s debt decreased for the fourth consecutive month, falling by £100 million to £5.9 billion, due to a decline in the retail price index measure of inflation. Tax receipts from VAT, income tax, and corporation tax also saw an uptick compared to the same period last year, while national insurance contributions fell following a rate cut introduced by the previous government.

Labour has pledged not to raise VAT, income tax, or corporation tax, all of which account for the majority of government revenue.

The UK’s overall borrowing has exceeded expectations for three consecutive months and is currently £7 billion higher than anticipated since the fiscal year began in April. Labour, since taking office in July, has pointed to a £22 billion fiscal shortfall left by the previous government.

However, Chancellor Reeves received a £10 billion fiscal boost ahead of her autumn budget plans, after the Bank of England announced it would be selling fewer government bonds back to the market. This reduction in bond sales, part of the Bank’s quantitative tightening strategy, could reduce the losses covered by Treasury cash transfers and provide additional fiscal headroom, according to Goldman Sachs.

Read more:
UK borrowing surpasses forecasts as debt reaches 100% of GDP

Previous Post

Retail sales surge to two-year high as British shoppers snap up summer deals

Next Post

Pound reaches two-year high as Bank of England holds interest rates steady

Next Post
Pound reaches two-year high as Bank of England holds interest rates steady

Pound reaches two-year high as Bank of England holds interest rates steady

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • Trending
    • Comments
    • Latest

    Gold Prices Rise as the Dollar Slowly Dies

    May 25, 2024

    Richard Murphy, The Bank of England, And MMT Confusion

    March 15, 2025

    We Can’t Fix International Organizations like the WTO. Abolish Them.

    March 15, 2025

    Free Markets Promote Peaceful Cooperation and Racial Harmony

    March 15, 2025

    “Ovacome, UK’s Ovarian Cancer Support Organization, to Host Free Event in Norwich for Those Affected by the Disease”

    0

    Ana-Maria Coaching Marks Milestone with New Book Release

    0

    The Consequences of California’s New Minimum Wage Law

    0

    Memorial Day

    0

    “Ovacome, UK’s Ovarian Cancer Support Organization, to Host Free Event in Norwich for Those Affected by the Disease”

    July 10, 2025

    “Ovacome, UK’s Ovarian Cancer Support Organization, to Host Free Event in Norwich for Those Affected by the Disease”

    July 10, 2025
    Charles Fain Lehman’s War on Weed

    Charles Fain Lehman’s War on Weed

    July 10, 2025

    Unforgettable Events Made Possible by World-Class Entertainment

    July 10, 2025

    Recent News

    “Ovacome, UK’s Ovarian Cancer Support Organization, to Host Free Event in Norwich for Those Affected by the Disease”

    July 10, 2025

    “Ovacome, UK’s Ovarian Cancer Support Organization, to Host Free Event in Norwich for Those Affected by the Disease”

    July 10, 2025
    Charles Fain Lehman’s War on Weed

    Charles Fain Lehman’s War on Weed

    July 10, 2025

    Unforgettable Events Made Possible by World-Class Entertainment

    July 10, 2025
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved

    No Result
    View All Result
    • News
    • Economy
    • Editor’s Pick
    • Investing
    • Stock

    Copyright © 2025 smartinvestmenttoday.com | All Rights Reserved