Disaster for Rachel Reeves as borrowing hits highest since Covid | Politics | News
Rachel Reeves was given even more dire figures this morning, showing that borrowing has reached a record high outside of the pandemic years. Despite record taxes, borrowing this year reached £132bn in the first eight months of the financial year.
This was £10 billion higher than the same period last year and £16.8 billion higher than the Office for Budget Responsibility forecast in March. Top Tory Mel Stride condemned the figures as “even more reckless spending” by Labor. The Shadow Chancellor fumed: “This year has been the highest borrowing on record outside of the pandemic, but the Budget has piled up even higher debts as Labor opted for even more reckless spending.
“By scrapping the two-child benefit cap and abandoning welfare reform, Labor is increasingly borrowing to fund irresponsible spending, imposing costs on future generations and weakening the economy.
“If Labor had a backbone, they would embrace our £47bn savings plan and Golden Economic Rule to reduce the deficit. Only the Conservatives have a leader with the backbone, plan and team to cut borrowing and create a stronger economy.”
Reform England’s Richard Tice accused Ms Reeves of “bankrupting Britain”, adding: “Spending and debt are out of control. Growth is zero and employment is falling.”
But the Office for National Statistics suggested there was some good news for the Chancellor.
Net borrowing by the public sector, excluding public sector banks, stood at £11.7bn in November.
This was £1.9bn less than in November 2024 and was the lowest for November in the last four years.
But they made it clear that this was only thanks to the high tax burden the Chancellor was imposing on hard-working Britons.
ONS senior statistician Tom Davies added: “The main reason for the decline compared to last year was increased revenues from taxes and National Insurance contributions.
“Borrowing as a whole for the financial year is higher than last year.”
Commenting on this morning’s figures, Treasury Under Secretary James Murray insisted “every penny” of taxpayers’ money must be spent “wisely”.
“1 in every £10 we spend goes towards interest on debt – money that could normally be put towards utilities.
“That’s why last month the Chancellor produced a Budget that delivers on our commitment to reduce debt and borrowing.”
