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

Sept. 21, 2022, 11:33 AM

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 ...