Highest government borrowing in September for five years

Government borrowing in the UK reached its highest level in five years in September, according to the latest official figures.

The Office for National Statistics (ONS) said borrowing (the difference between public spending and tax revenue) was £20.2bn in September, up £1.6bn on the same month last year.

The ONS said the rise in debt interest payments offset the increased amount the government collects through tax and national insurance.

The ONS has revealed that borrowing in the first six months of the financial year has now reached £99.8bn; This figure increased by 11.5 billion pounds compared to the same period last year.

The September figures continue the trend seen in August, when borrowing was at its highest level in five years.

The borrowing figure was slightly below analysts’ expectations but was roughly in line with estimates in March by the government’s official forecaster, the Office for Budget Responsibility.

Although tax revenue is significantly higher than last year, partly due to increases in employers’ national insurance contributions, expenditure has also increased.

This was partly due to wage increases and inflation increasing the government’s day-to-day operating costs, as well as inflation-related increases in government benefits.

Responding to the figures, Under Secretary to the Treasury James Murray said the government would “never play fast and loose with the public finances”.

He reiterated the government’s aim to reduce borrowing, “getting rid of high-cost debt interest, instead putting the money into the NHS, schools and the police”.