Higher UK Deficit Piles Pressure on Chancellor Before Budget (1)

The UK posted a bigger government deficit than expected in the first half of the fiscal year, ratcheting up pressure on Chancellor of the Exchequer Rachel Reeves to raise taxes and borrow more to cover higher spending at next week’s budget.

Government borrowing was £79.6 billion ($103.6 billion) between April and September, a £6.7 billion overshoot compared to official forecasts, figures from the Office for National Statistics showed on Tuesday. September’s shortfall was £16.6 billion, below economists’ expectations for a £17.5 billion deficit but still the third-highest borrowing on record for the month.

However, there was better news for Reeves ...