UK government borrowing has reached the highest level since the start of the Covid pandemic, official data revealed Friday, dealing a blow to the government ahead of its annual budget.
The public deficit between April 鈥� the start of the UK fiscal year 鈥� and August hit 拢83.8 billion ($113 billion), the Office for National Statistics (ONS) said in a statement.
Since records began in 1993, the amount is second only to that seen during the same five-month period in 2020 when the pandemic took hold.
The ONS added that in August the deficit, or difference between public spending and tax revenue, was 拢18 billion, up 拢3.5 billion from a year earlier.
The Labour government led by prime minister Keir Starmer has overseen a mostly stalled UK economy since winning power in July last year.
Labour鈥檚 troubles worsened this month when the yield on 30-year UK government bonds hit its highest level since 1998, with concerns growing about soaring state debt.
Focus is on the upcoming budget at the end of November, with economists expecting finance minister Rachel Reeves to hike taxes in order to help balance the books.
Reeves already increased certain levies in her inaugural budget last October, which experts argue has hindered UK economy growth.
Friday鈥檚 data 鈥榠s going to lead to calls about the sustainability of public finances, and the need for tax rises at the upcoming budget鈥�, noted Kathleen Brooks, research director at XTB trading group.
Britain is also facing elevated inflation, which caused the Bank of England on Thursday to leave its key interest rate at four per cent.