Humiliation for Rachel Reeves as the UK borrows more than ever | Politics | News
Britain is borrowing more than at any time since the Covid outbreak, new official figures show. This is a huge blow to Rachel Reeves. Borrowing for the financial year to date is £116.8bn; this is £9bn higher than the same period the previous year. And the Treasury had to borrow £17.4bn more than expected in October alone.
Finance data shows why the Chancellor will have to raise taxes in next week’s budget. But the Conservatives said it must avoid causing further damage to cash-strapped households by keeping spending under control. Sir Mel Stride, Shadow Chancellor of the Exchequer, said: “Borrowing so far this year is the highest recorded outside of the pandemic.
“If Labor had a backbone, they would control spending to avoid tax rises next week. Labor plans to spend more and more, while the Conservatives would cut the deficit and cut taxes with our Golden Economic Rule and £47bn savings plan.
“Only the Conservatives have the backbone, the team and a leader with a clear plan to control spending, live within our means and cut taxes, delivering a stronger economy.”
Grant Fitzner, chief economist at the Office for National Statistics, said: “Borrowing this October was down on the same month last year, but it was still the third-highest October figure on record in cash terms.
“Although spending on public services and social benefits increased in October last year, this was more than offset by increases in revenue from taxes and National Insurance contributions.”
Chief Secretary to the Treasury James Murray said next week’s Budget will set out how Rachel Reeves plans to “cut the debt”.
He said: “We are currently spending £1 of every £10 of taxpayers’ money on interest on our national debt.
“This money should go to our schools, hospitals, police and armed forces.
“We are therefore prepared to deliver the largest primary deficit reduction in both the G7 and G20 over the next five years to reduce borrowing costs.
“In next week’s budget the Chancellor will explain how we will hold fair elections to deliver on people’s priorities for shortening NHS waiting lists, reducing debt and lowering the cost of living.”
Shopkeepers are calling on the Chancellor to support them and avoid further tax rises.
British Retail Consortium Insight Director Dr. Kris Hamer said: “While retailers are still reeling from the £7bn surcharge, they are hopeful of a budget that will ensure no store pays more on business rates so they can invest more in their stores and warehouses, bringing jobs and growth to the UK economy.”
