UK public borrowing falls less than expected as debt costs rise

Finance minister Rishi Sunak (pic) will unveil new budget and growth forecasts on Oct 27, as well as new multi-year spending limits for individual government departments and potentially some longer-term fiscal goals.

LONDON: British public borrowing declined by less than expected in August, according to government figures, highlighting the hefty ongoing costs of the Covid-19 pandemic and a rise in debt interest payments as inflation picked up.

Public sector net borrowing, excluding state-controlled banks, fell to £20.5bil (US$28bil or RM118bil) in August, down 21% from August a year earlier, but well above economists’ average £15.6bil (RM90bil) forecast in a Reuters poll.