For the first seven months of the tax year, total borrowing reached £96.6 billion, which is £1.1 billion more than the same period last year.

The Office for National Statistics reported that borrowing for the previous financial year was £3.2 billion higher than earlier predictions, totaling £125.1 billion.

In October 2024, the UK government borrowed £17.4 billion, significantly exceeding the anticipated £12.3 billion, marking the second highest October borrowing since records began in January 1993.

The increase in debt servicing costs amounted to £9.1 billion in October, accounting for over half of last month's borrowing, largely due to rising inflation impacting repayment rates on index-linked gilts.

Government spending, including services and debt repayments, has risen at a faster rate than tax receipts, contributing to the surge in borrowing.

The Labour government plans to increase borrowing to enhance public services and invest in infrastructure, moving away from previous Conservative spending strategies.

Chancellor Rachel Reeves faces pressure from disappointing borrowing figures, which may necessitate further tax increases to support government spending in future years.

Reeves announced the largest tax increases in 30 years, primarily through higher social security contributions from employers, aiming to balance day-to-day spending with tax revenues by the decade's end.

Public sector net debt now stands at 97.5% of GDP, a level not seen since the early 1960s, while the new measure of public sector net financial liabilities indicates a debt of 83.7% of GDP.

The October borrowing amount exceeded expectations by £4 billion, highlighting the growing gap between tax revenues and public spending.

Tax receipts increased by £2.9 billion to £61.3 billion, driven by higher Corporation Tax and Income Tax, although overall spending rose by £3.9 billion to £88.5 billion.

The Office for Budget Responsibility forecasts that the deficit will increase further in the current year to £127.5 billion.