Labour Pay Rise Deals Fuel Soaring Borrowing
New public sector borrowing figures from the ONS make grim reading ahead of the budget. It’s at the third-highest September level since records began and at its highest since the pandemic…
The state has borrowed £6.7 billion more than the OBR forecast so far this financial year, and £1.2 billion more than a year ago this month. The ONS says spending is to blame despite record revenue from growth-killing taxes:
“While tax revenue increased, this was outweighed by increased spending, partly due to higher debt interest and public sector pay rises.”
Chief Treasury Secretary Darren Jones has issued the old line blaming the Tories for having “no plan to fund pay deals for millions of public sector workers. Strikes cost at least £3bn last year, so it was the right thing to do to end those damaging disputes.” At this rate Reeves might have to invent yet another black hole before the budget…
