Conservatives say Chancellor Rachel Reeves should get a ‘backbone’ as borrowing is higher than any time outside the pandemic
The UK is borrowing more money than at any time since the Covid pandemic, new official figures show in a huge blow to Rachel Reeves. Borrowing for the financial year to date is £116.8 billion, which is £9 billion higher than the same period a year ago. And the the Treasury was forced to borrow £17.4 billion in October alone, more than expected.
The finance data shows why the Chancellor will be forced to increase taxes in next week’s Budget. But Conservatives said she should have avoided inflicting more pain on cash-strapped households by getting spending under control instead. Sir Mel Stride, Shadow Chancellor of the Exchequer, said: “Borrowing so far this year has been the highest on record outside the pandemic.
“If Labour had any backbone, they would control spending to avoid tax rises next week. While Labour plan to spend more and more, Conservatives would cut the deficit and cut taxes with our Golden Economic Rule and our £47 billion savings plan.
“Only the Conservatives have a leader with the backbone, the team, and the clear plan to control spending, live within our means, and reduce taxes – delivering a stronger economy.”
Office for National Statistics chief economist Grant Fitzner said: “Borrowing this October was down on the same month last year, although it was still the third-highest October figure on record in cash terms.
“While spending on public services and benefits were both up on October last year, this was more than offset by increased receipts from taxes and National Insurance contributions.”
Treasury Chief Secretary James Murray said next week’s Budget would set out how Rachel Reeves intends to “cut debt”.
He said: “Currently we spend £1 in every £10 of taxpayer money on the interest of our national debt.
“That money should be going to our schools, hospitals, police and armed forces.
“That is why we are set to deliver the largest primary deficit reduction in both the G7 and G20 over the next five years – to get borrowing costs down.
“At the Budget next week, the Chancellor will set out how we will take the fair choices to deliver on the public’s priorities to cut NHS waiting lists, cut debt and cut the cost of living.”
Shop owners are urging the Chancellor to support them and avoid further tax rises.
Dr Kris Hamer, Director of Insight at the British Retail Consortium, said: “With retailers still reeling from the £7bn of additional tax, they are hopeful for a budget that ensures no store pays more in business rates so they can invest more in their stores and warehouses which bring jobs and growth for the UK economy.”
