Public borrowing rises

Public sector net borrowing has risen by more than expected, by £2.7 billion to £8.6 billion in October. And public sector net debt has now passed the trillion mark; it now stands at £1.1 trillion

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Public sector debt passes the trillion mark

In October Government spending continued to outstrip the amount of money it received in tax:

  • Total tax receipts were 1.8% higher at £47.5 billion, but total expenditure rose 7.4% to £52.8 billion
  • Tax revenues were dragged down by a drop in corporation tax, which fell 9.5% to £8.1 billion
  • Spending on social benefits, such as state pensions, jumped 7.7% to £16 billion
  • Public sector net debt now stands at £1.1 trillion

Chancellor given 'less wriggle room' as borrowing rises

by - Former Business Editor

Worse than expected borrowing figures for the Government in October mean George Osborne has less wriggle room in the mini-budget next month. In part, worse than expected borrowing figures are due to the Corporation Tax the Government collects from business sliding down.

George Osborne will deliver his Autumn statement next month
George Osborne will deliver his Autumn statement next month Credit: Press Association

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Government borrowing rises to £8.6 billion

Government borrowing rose by £2.7 billion to £8.6 billion in October. Today's figures from the Office for National Statistics are the last set before the Chancellor's Autumn Statement.

They are crucial in indicating whether or not George Osborne will need to introduce further austerity measures to bring down Britain's debt and stick to the target.

The government will study today's figures closely ahead of the Chancellor's Autumn statement
The government will study today's figures closely ahead of the Chancellor's Autumn statement Credit: Press Association