The U.K.’s public sector net debt rose in August to its highest since the early 1960s, reaching 100 percent of the country’s gross domestic product (GDP) and around 4.3 percentage points more than at the end of August 2023. The Office for National Statistics (ONS) revealed that, excluding the Bank of England, U.K. public debt reached 92 percent of GDP, 5.0 percentage points more than at the end of August 2023 but 8.0 percentage points lower than the wider debt measure.
Borrowing rises £3.3 billion
In August, borrowing, the difference between public sector spending and income, also rose £3.3 billion annually to £13.7 billion ($18.24 billion) in August 2024, marking the third highest August borrowing since monthly records began in January 1993.
The U.K. public sector’s net worth excluding public sector banks reported a deficit of £727.6 billion, a £119.8 billion larger deficit than at the end of August 2023.
Meanwhile, the central government net cash requirement reached £11.0 billion in August 2024, up £4.9 billion annually.
The statistics agency also revealed that central government tax receipts increased by £3.7 billion to £61.0 billion, with increases in income tax, value added tax (VAT), and corporation tax receipts of £1.5 billion, £1.3 billion and £0.7 billion, respectively. Meanwhile, compulsory social contributions decreased by £0.6 billion to £13.9 billion, largely because of the reductions in the main rates of National Insurance in 2024.
Expenditure rises on social benefits, spending
Besides, the central government’s total expenditure was £90.5 billion in August 2024, £6.1 billion more than in August 2023. Net social benefits increased by £9.7 billion to £128.5 billion, largely because of inflation-linked benefits uprating. Meanwhile, departmental spending on goods and services increased by £8.9 billion to £175.2 billion, as inflation increased running costs.
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