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Debt interest and support for energy bills add to borrowing

The budget deficit continues to fall year on year, with April-to-July borrowing of £55.0 billion down £12.1 billion on last year. But it was £3.0 billion above our March forecast profile, largely reflecting higher spending. Sharp rises in inflation continue to raise debt interest costs by even more than our forecast assumed, while the cost-of-living payments to means-tested benefit recipients – announced in May, so not reflected in our March forecast – began last month.

Line chart showing cumulative public sector net borrowing

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