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The Guardian - UK
The Guardian - UK
Business
Larry Elliott Economics editor

UK government borrowing hits higher than expected £3.1bn in July

Rachel Reeves in her office at No 11.
The chancellor, Rachel Reeves, is planning to raise taxes and cut spending in the October budget. Photograph: Jordan Pettitt/PA

Strong spending on public services and welfare pushed government borrowing last month to more than double its level in the same period a year earlier, adding fuel to the row between Labour and the Conservatives over the health of the public finances.

The £3.1bn deficit was the highest for a July in three years and £3bn higher than expected by the government’s spending watchdog, the Office for Budget Responsibility (OBR).

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