RACHEL Reeves has been accused of “losing control” of the public finances as borrowing hit the highest level for the month in five years.
Borrowing hit close to £100 billion which was the second-highest amount since 1993, for the months between March and September.
It was £7.2 billion more than forecast earlier this year.
Figures also revealed that public sector borrowing hit £20.2 billion for September which was £1.6 billion higher than the same month last year.
The amount was just ahead of the £20.1 billion forecast to be borrowed by the independent watchdog back in March.
Higher spending on debt, pay rises and inflation all pushed up the government deficit – offsetting the amount raised through tax and national insurance.
The latest figures will continue to heap pressure on the Treasury who look forced to find £30 billion to plug the nation’s finances at the Budget.
Sir Mel Stride said: “Borrowing is soaring under this Labour government. Rachel Reeves has lost control of the public finances and the next generation are being saddled with Labour’s debts.
“If Rachel Reeves had a plan – or a backbone – she would stand up to her backbenchers, get spending under control and cut the deficit. Instead she is plotting to hike taxes yet again to pay for her failures.”
Experts now insist that the Treasury may even overshoot borrowing forecasts by some £10 billion for the current year.
Martin Beck, from WPI Strategy, said: “As things stand, total borrowing in 2025–26 could overshoot the OBR’s full-year forecast by around £10bn, pushing the deficit to close to 5pc of GDP.
“That’s uncomfortably large for an economy operating near full employment and long past the shocks of the pandemic and energy crisis.”
Chief economist Grant Fitzner, from the Office of National Statistics, said: “Last month saw the highest September borrowing for five years.
“Debt interest, the cost of providing public services and benefits all increased compared with last year, more than offsetting the rise in receipts from central government taxes and national insurance contributions.
“Likewise, the first six months of the financial year saw the highest overall deficit since 2020.”
Treasury Minister James Murray said: “This Government will never play fast and loose with the public finances.
“We know that when you lose control of the public purse it’s working people who pay the price.
“That’s why we plan to bring down borrowing and, according to IMF (International Monetary Fund) data, are set to deliver the largest primary deficit reduction in both the G7 and G20 over the next five years.
“We are cutting waste, improving efficiency and transforming our public services for the future so that we can be rid of costly debt interest, instead putting that money into our NHS, schools and police.”
