Home ›› 22 Oct 2021 ›› World Biz
UK government borrowing fell by more than expected in September but remains elevated on Covid, official data showed Thursday ahead of next week’s budget announcement.
Finance minister Rishi Sunak welcomed the upbeat news as he prepares to deliver his tax and spend plans on Wednesday.
Public sector net borrowing slid to £21.8 billion ($30.1 billion, 25.8 billion euros) last month, the Office for National Statistics said in a statement.
The improvement was driven by falling Covid-related expenditure and rising tax receipts as the economy starts to recover.
The monthly borrowing was nevertheless the second highest level for September since records began, after £28.8 billion in the same month one year earlier.
“Our recovery is well underway... but the pandemic has had a huge impact on our economy and caused our debt levels to rise,” Sunak said.
“At the budget and spending review next week I will set out how we will continue to support public services, businesses and jobs while keeping our public finances fit for the future.”
The British economy had rebounded in August despite ongoing supply chain woes and labour shortages, after shrinking slightly in July.