In the latest set of figures before Chancellor Jeremy Hunt unveils a new tax and spending plan, the Office for National Statistics (ONS) said the government borrowed £20 billion last month to cover the gap between tax revenue and public spending. That was the second-highest borrowing rate in September since monthly records began in 1993, surpassed only by the amount borrowed during the pandemic. It is also £5.2 billion more than the Office for Budget Responsibility (OBR), the government’s tax and spending watchdog, had forecast in March. Public finances have come under the spotlight in recent weeks after Ms Truss unveiled a huge package of unfunded tax cuts, sending the market into turmoil as investors worry about the impact on Britain’s debt. Even after new Chancellor Jeremy Hunt dropped most of the measures, he still needs to find tens of billions in savings to close the gap. Separate data this morning showed retail sales fell more than expected in September, fueling fears of a looming recession. Retail sales fell by 1.4% last month, according to the ONS, with retailers saying the extra bank holiday for the Queen’s funeral was partly to blame. The pound extended its losses after the gloomy reports, falling 0.5% against the dollar to $1.1178. Read below for the latest updates
