UK Government borrowing soared above forecasts last month as public sector spending rose, putting pressure on Chancellor Rachel Reeves ahead of her spring statement.
The Office for National Statistics (ONS) said public sector net borrowing was £10.7 billion in February – £100 million more than the same month last year and the fourth-highest February on record.
It was also £4.2 billion more than had been forecast by the Government’s official forecaster, the Office for Budget Responsibility (OBR).
The borrowing figure refers to the difference between what the Government spends on the public sector and what it receives in income from tax and other receipts.
Overall spending on public services increased compared with the same month last year, with things like social benefits and investment spending more than had been forecast, the ONS said.
The figures come less than a week before Chancellor Rachel Reeves will lay out her tax and spending plans in the Government’s spring statement.
Jessica Barnaby, the ONS’s deputy director for public sector finances, said: “At £10.7 billion, public sector borrowing in the month of February was virtually unchanged on the same month last year.
“However, borrowing over the financial year to date was up nearly £15 billion on the equivalent period last year.”
