Government borrowing grew in September to the third highest figure for the month on record ahead of the upcoming Autumn Budget.
Borrowing increased by £2.1 billion against September last year to £16.6 billion, the Office for National Statistics reported on Tuesday.
This marked the highest figure for September since records began in 1993 and was above the Office for Budget Responsibility’s forecast for £15.1 billion.
Central government receipts, from the likes of taxes, increased by £3.3 billion to £80.7 billion over the month.
Expenditure climbed by £5.5 billion to £93.7 billion as debt interest costs grew, alongside spending on the likes of goods and services due to pay rises and inflation.
“With just over a week to go before the UK budget, it lays bare the dire state of the UK’s finances and borrowing this year is on track to surge above forecasts,” XTB analyst Kathleen Brooks said.
She highlighted tax receipts had been broadly stable in the months running up to the October 30 Budget, while interest payments and expenditure had been trending lower.
“However, the UK’s public finances are never a pretty read, and today’s data highlights the complicated plight the Chancellor faces next week.”