UK government borrows more than expected as debt costs surge

“Rising inflation and increasing debt interest costs pose a challenge for the public finances, as they do for family budgets,” Chancellor of the Exchequer Rishi Sunak said

LONDON: The United Kingdom government borrowed more than forecast in May after a 70% surge in interest payments to service the national debt.

The budget deficit stood at £14bil (RM75bil), £2bil (RM10.7bil) higher than economists had forecast. Overall government spending was higher than the Office for Budget Responsibility (OBR) predicted in March, and receipts were lower.