Bloomberg Tax
Sept. 21, 2022, 11:33 AM

UK Budget Deficit Swells Ahead of Truss Tax Cut Program (1)

Andrew Atkinson
Andrew Atkinson
Bloomberg News

The UK government borrowed almost twice as much as officially forecast in August, raising questions about the sustainability of the public finances even before Prime Minister Liz Truss’s plans for a multi-billion pound giveaway in a mini-budget on Friday.

The budget deficit last month was £11.8 billion ($13.4 billion), £5.8 billion more than the Office for Budget Responsibility expected in March. Runaway inflation drove debt-interest costs to £8.2 billion, the highest for any August on record, the Office for National Statistics said. Monthly borrowing also overshot market forecasts by roughly 50%.

The deterioration in the deficit comes as Truss ...