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Treasury warns of difficult decisions in budget after September borrowing rise
ONS data shows higher debt interest payments and pay awards for public sector workers pushed figure to £16.6bnBusiness live – latest news updatesThe Treasury has said it will need to take difficult decisions in next week’s budget after higher debt interest payments and pay awards for public sector workers pushed government borrowing to £16.6bn last month – the third highest September figure on record.In the last update on the state of the public finances before Rachel Reeves announces her tax and spending plans next week, the Office for National Statistics (ONS) said the UK’s budget deficit was £2.1bn higher last month than in the same month a year earlier. Continue reading...
https://www.theguardian.com/business/2024/oct/22/treasury-warns-of-difficult-decisions-in-budget-after-september-borrowing-rise
The Treasury is facing tough decisions in the upcoming budget due to increased government borrowing of £16.6bn last month, largely driven by higher debt interest payments and public sector pay awards. Despite tax revenue rising, increased spending led to a higher deficit than anticipated. The Chief Secretary to the Treasury emphasized the need for decisive action to address the £22bn deficit inherited, emphasizing the importance of fixing the economy's foundations. The limited scope for increased spending without raising taxes raises challenges for the Chancellor's upcoming budget announcement.