Overview

• The government borrowed £18 billion in August, £3.5 billion more than a year earlier and well above City and OBR projections for the month.
• Cumulative borrowing for April–August reached £83.8 billion, overshooting the OBR’s expectation by £11.4 billion and marking the second-highest total for that period on record.
• Public sector net debt was about 96.4% of GDP at the end of August, while monthly debt interest rose to £8.4 billion from £6.6 billion a year earlier.
• Economists say significant tax rises in the Autumn Budget now look likely, with estimates of needed revenue ranging from roughly £28 billion to £50 billion.
• GfK reported a further drop in consumer confidence this month, with commentators linking the slide to expectations of tax increases in November.