As Downing Street plans to unveil its mini-budget on Friday, new figures reveal that government borrowing rocketed to record levels.
Data from the Office for National Statistics (ONS) revealed that rising inflation resulted in the interest on government debt soar by 22 per cent year-on-year to £8.2 billion last month. This is the highest August figure since monthly records began in April 1997.
In August, government borrowing - excluding state-owned banks - hit £11.8 billion which is almost double the £6 billion predicted by fiscal watchdog the Office for Budget Responsibility (OBR). It also represents a £6.5 billion surge from pre-pandemic levels in 2019 which was forecast at £5.3 billion.
