Home Business news UK government borrowing jumps over forecast to £18.3bn in August as ‘fiscal...

UK government borrowing jumps over forecast to £18.3bn in August as ‘fiscal straightjacket’ tightens – business live

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Rolling coverage of the latest economic and financial news

Good morning, and welcome to our rolling coverage of business, the financial markets and the world economy.

Britain’s national debt is rising faster than expected after the government borrowed more than expected, again, to balance the books.

But why is the deficit proving so hard to reduce? The weakness lies mainly on the expenditure side. Higher inflation is impacting spending on public-sector pay, state benefits and pensions. And last week’s announcement that inflation has hit 3.1% will not have helped.

On top of this, the cost of servicing the national debt remains exceptionally high. Public sector net debt is just below £3 trillion, representing around 94% of GDP, the highest since the early 1960s.

7am BST: UK public finances for August

10am: UK Treasury Gilt 2032 Auction

11am BST: CBI industrial trends report

3pm BST: Eurozone consumer confidence report

Continue reading…Rolling coverage of the latest economic and financial newsGood morning, and welcome to our rolling coverage of business, the financial markets and the world economy.Britain’s national debt is rising faster than expected after the government borrowed more than expected, again, to balance the books.But why is the deficit proving so hard to reduce? The weakness lies mainly on the expenditure side. Higher inflation is impacting spending on public-sector pay, state benefits and pensions. And last week’s announcement that inflation has hit 3.1% will not have helped.On top of this, the cost of servicing the national debt remains exceptionally high. Public sector net debt is just below £3 trillion, representing around 94% of GDP, the highest since the early 1960s.7am BST: UK public finances for August10am: UK Treasury Gilt 2032 Auction11am BST: CBI industrial trends report3pm BST: Eurozone consumer confidence report Continue reading…