Stubborn figures may force Chancellor to drop target

The stubborn figures on borrowing may heighten expectations that the Chancellor will abandon his deadline to start lowering UK debt within three years.

Chancellor, George Osborne
Chancellor, George Osborne Credit: Press Association

George Osborne is expected to announce in his autumn statement that the Government will be unable to start bringing down debt as a percentage of GDP in 2015/16.

The chances of the Chancellor dropping his target appeared to increase after Bank of England Governor Sir Mervyn King effectively endorsed such a move.

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Govt borrowing unchanged

The level of Government borrowing remained unchanged last month at £14.4 billion in August, equal to borrowing in the same month last year. It puts the Chancellor under pressure after he pledged to start bringing down debt in 2015/16.