Britain borrowed more than expected last month, according to official figures published today that showed the scale of the challenge facing finance minister Rachel Reeves who is expected to announce cuts to her spending plans next week.
UK public sector net borrowing stood at £10.7 billion in February, the Office for National Statistics said.
A Reuters poll of economists showed a median forecast of a £6.60 billion deficit.
Rachel Reeves is due to deliver a Spring Statement budget update speech alongside fresh economic and public finance forecasts from Britain’s fiscal watchdog on March 26.
The ONS said Britain’s government borrowed £132.2 billion over the first 11 months of the 2024/25 financial year, much higher than the watchdog’s forecast for a shortfall of £111.8 billion.
It was also the third-highest borrowing for the equivalent period since records started in 1993, only surpassed during the Covid-19 pandemic and after the global financial crash, the ONS said.
