The UK government borrowed more than expected last month, official figures show, adding to pressure on the Treasury in the run-up to the autumn budget.
Figures from the Office for National Statistics (ONS) showed public sector net borrowing – the difference between public spending and income – rose to £18bn in August, £3.5bn more than in the same month a year earlier.
The reading was above City predictions for a deficit of £12.75bn and forecasts from the Office for Budget Responsibility of £12.5bn.
The chancellor, Rachel Reeves, is widely expected to present a package of tax rises in her 26 November budget to offset deteriorating economic forecasts and plug a spending deficit that some estimates say could be up to £40bn.
The ONS borrowing figures come a day after the Bank of England voted to keep the base interest rate unchanged at 4%, amid concerns about persistent above-target inflation, which was 3.8% in the year to August.
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