Rachel Reeves has been handed yet more disastrous figures this morning, showing that borrowing hit a record high outside of pandemic years. Despite record-high taxes, borrowing this year hit £132 billion in the first eight months of the financial year.
This was £10 billion higher than the same period last year, and £16.8 billion higher than the Office for Budget Responsibility forecast in March. Top Tory Mel Stride condemned the figures as “even more reckless spending” by Labour. The Shadow Chancellor blasted: “Borrowing this year is the highest on record, outside of the pandemic – yet at the Budget Labour chose even more reckless spending, piling up ever higher debt.
“Having scrapped the two-child benefit cap and abandoned welfare reform, Labour are borrowing more and more to fund irresponsible spending – heaping costs on the next generation and weakening the economy.
“If Labour had any backbone, they would adopt our £47 billion savings plan and our Golden Economic Rule to reduce the deficit. Only the Conservatives have a leader with the backbone, the plan, and the team to cut borrowing and deliver a stronger economy.”
While Reform UK’s Richard Tice accused Ms Reeves of “bankrupting Britain”, adding: “Spending and debt out of control. Growth zero & jobs falling.”
The Office for National Statistics suggested there was some good news for the Chancellor, however.
Public sector net borrowing, excluding public sector banks, stood at £11.7 billion for the month of November.
This was £1.9 billion less than in November 2024, and the lowest for any November in four years.
However, they made clear this was only thanks to the Chancellor’s higher tax burden levied on hard-working Britons.
Tom Davies, senior ONS statistician, added: “The main reason for the drop from last year was increased receipts from taxes and National Insurance contributions.
“Across the financial year to date as a whole, borrowing is higher than last year.”
Commenting on this morning’s figures, Chief Secretary to the Treasury James Murray insisted that “every penny” of taxpayers’ money should be spent “wisely”.
“1 in every £10 we spend goes on debt interest – money that could otherwise be invested in public services.
“That is why last month the Chancellor set out a Budget that delivers on our pledge to cut debt and borrowing.”
