In October, the UK's budget deficit surpassed initial projections, reaching its second-highest ever recorded level for the month. This surge was primarily driven by increased debt interest payments. According to the Office for National Statistics, public sector net borrowing rose to £17.4 billion, up from £15.8 billion the previous year.
The borrowing figure for October was anticipated to be around £14.1 billion, making the actual amount the second highest for October since the monthly record-keeping commenced in January 1993.
Central government's interest payable on debt climbed by £0.5 billion, totaling £9.1 billion, marking the highest October level since records began in January 1997. Meanwhile, central government receipts increased by £2.9 billion, reaching £81.2 billion. Concurrently, expenditure grew by £3.9 billion, amounting to £88.5 billion.
While there was a rise in tax receipts for the central government, this was somewhat offset by a decrease in compulsory social contributions.
For the financial year extending to October, the budget deficit stood at £96.6 billion. This was £1.1 billion higher than the same period in the previous financial year, representing the third-largest borrowing figure on record for a financial year-to-October.
At the close of October, public sector net debt, excluding public sector banks, was estimated at 97.5% of the gross domestic product.
