UK government borrowing rose to £18.3bn in August, overshooting forecasts

UK public sector borrowing reached £18.3bn in August, up nearly a fifth from a year earlier and above official forecasts ahead of the October Budget.

• The Office for National Statistics reported public sector net borrowing of £18.3bn in August, £2.9bn higher than a year earlier and £3.5bn above the OBR forecast.
• Debt interest payments rose to £8.8bn, the highest August level since records began in 1997.
• Chief Secretary to the Treasury Emma Reynolds said the government remains committed to its fiscal rules with a buffer against uncertainty.
• Conservative Treasury spokesperson Andrew Griffith accused Labour of losing control of public finances, saying borrowing overshot the OBR forecast by £8bn.
• Economists quoted by the Telegraph said tax rises are now unavoidable ahead of the October Budget.