The British government loans considerably exceeded expectations in February, according to official data, intensification The pressure on Chancellor Rachel Reeves, preparing herself for her spring statement next week.
In February the government borrowed £ 10.7 billion, on the occasion of the fourth highest February figure since the records started in 1993, according to the Office for National Statistics (us). This was far beyond the forecast of the city, which expected the borrowing of around £ 7 billion.
For the financial year to February, the loan was £ 132.2 billion, an increase of £ 14.7 billion compared to the same period in the previous year. In October, the Office for Budget Responsibility (OBR) had projected that borrowing the public sector would reach £ 127.5 billion for the entire financial year, ending in March. An updated OBR prediction is expected to be published during its spring statement on Wednesday.
Jessica Barnaby, deputy director for finance in the public sector at De us, said: “At £ 10.7 billion, the public sector in the month of February almost unchanged in the same month last year. However, borrowing during the financial year to date was almost 15 billion in the equivalent period last year.”
The loan figure refers to the difference between what the government spends on the public sector and what it receives in income from taxes and other receipts.
The total expenditure for public services have risen compared to the same month last year, with things like social benefits and investment expenditure, were more predicted, according to the us.
Reeves will use the spring statement to announce further cuts on government spending in an attempt to maintain the tax discipline. According to its tax rules, the Chancellor has committed itself to the current budget, which excludes government investments by 2029-30.
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