Government borrowing falls in September, but Chancellor in 'tight spot'

Dropped £7bn compared to last year

The Chancellor will be in a “tight spot” at next week’s budget as despite a fall in government borrowing in September, it remains the second-highest for the month since the records began in 1993.

Borrowing dropped by £7bn compared to last September at £21.8bn. However, national debt remains high at 95.5% GDP, the highest recorded level since the early 1960s. Hinesh Patel, portfolio manager at Quilter Investors said the borrowing rate should fall "at a faster rate than we have seen in previous months" now that the furlough scheme has wound up. "While in previous months the Chancellor has not appeared to be overly concerned by borrowing levels, owing to interest rates sitting at an all-time low, at the recent Conservative party conference he highlighted the long and costly road ...