- UK government borrowing hit £18bn in August, a figure the Financial Times calls dismal, adding to fiscal pressure on Chancellor Healey ahead of the Budget.
- Inflation is the driver of higher government spending, pushing the August deficit above expectations.
- The overshoot arrives ahead of the Budget, raising the risk of tighter fiscal measures or higher gilt issuance.
Quotes
“Dismal’ £18bn figure for August comes as inflation drives up government spending”