Overview

• ONS data show August borrowing at £18 billion, the highest August level since 2020 and about £5 billion above City expectations.
• Borrowing for April to August reached £83.8 billion, around £11.4 billion above the OBR’s year‑to‑date forecast and the second-highest on record for that period.
• Higher spending on public services and benefits, coupled with £8.4 billion in debt interest, outpaced gains in tax and National Insurance receipts.
• Public sector net debt was estimated at 96.4% of GDP at the end of August, keeping the debt ratio near early‑1960s levels.
• Analysts say tax rises now look likely, with estimates ranging from roughly £28 billion to as much as £50 billion, as gilt yields rose and the pound weakened following the figures.