Borrowing exceeds forecast by £7.2bn to dig deeper hole for Reeves

Britain's public finances have taken a dramatic turn for the worse, with new figures revealing borrowing has surpassed forecasts by a staggering £7.2 billion. The unexpected surge in debt has intensified pressure on Chancellor Rachel Reeves as she prepares for next month's crucial budget, with expectations mounting that she'll announce tens of billions of pounds in tax rises.

In a stark warning about the nation's financial health, Sir Robert Chote, former head of the Office for Budget Responsibility (OBR), has urged Reeves to consider "unpalatable" spending cuts to prevent a potential crisis. His endorsement of a report advocating for more than £100 billion in public expenditure cuts signals growing alarm among economic experts about the sustainability of current fiscal policies.

The latest borrowing figures represent a significant setback for the government's economic strategy and come at a particularly sensitive time. With households and businesses already feeling the pinch from inflation and economic uncertainty, the chancellor faces the daunting task of balancing the nation's books without further damaging growth or voter confidence.

"These numbers create an extremely challenging environment for the budget," said one Treasury insider, speaking on condition of anonymity. "Every option will be painful, but inaction could be far more damaging in the long run."

The unexpected deficit figures have sent shockwaves through financial markets, with economists revising their predictions for the scale of fiscal tightening ahead. All eyes are now on November's budget statement, where Reeves will need to present a credible plan to restore fiscal credibility while protecting the most vulnerable from the economic fallout.

Read the original reporting on The Times