Fri, 19 Sep 2025

Fri, 19 Sep 2025 Highest government borrowing in August for five years

Higher than expected borrowing adds to the pressure on the chancellor ahead of the Budget.

* Borrowing over first five months of financial year reached £83.8bn, £16.2bn higher than same period last year
* Analysts say Chancellor Rachel Reeves faces "tough choices" to meet tax and spending rules, with speculation of tax rises
* Government borrowing costs increased due to inflation pushing up interest payments on debt
* Retail sales rose 0.5% in August, beating analyst expectations, but overall sales volumes remain below pre-pandemic levels
* Analysts warn of ongoing cost pressures and profit margin strain for retailers as they head into autumn
* UK government hopes investment from US tech firms will create over 7,600 high-quality jobs
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