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Government borrowing rose to £17.4bn last month – the second highest October figure since monthly records began, official figures show.

Economists had predicted £13.3bn of borrowing.

The Office for National Statistics (ONS) said public sector net borrowing was £1.6bn higher than the same month last year.

Figures also showed that central government debt interest rose to £9.1bn for the month – the highest October figure on record.

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Jessica Barnaby, ONS deputy director for public sector finances, said: “This month’s borrowing was the second highest October figure since monthly records began in January 1993.

“Despite the cut in the main rates of national insurance earlier in 2024, total receipts rose on last year.

“However, with spending on public services, benefits and debt interest costs all up on last year, expenditure rose faster than revenue overall.”

Not since the pandemic year of 2020 when the furlough scheme was in operation was there a gap as big between state income and spending.

It’s down to hiked interest rates. Government borrowing also grew more expensive in the weeks running up to the US election.

Uncertainty over who would become the next US president and what would be announced in the budget brought up the rate the UK had to pay on its bonds – a form of debt states issue to raise funds.

Many of the public sector pay rises announced by the new Labour government also took effect last month.

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Another contributing factor was spending on public services and benefits, the ONS said, which increased faster than increased tax takes.

Tax revenues also rose, despite national insurance cuts – just not as fast as spending.

It will be unwelcome news for Chancellor Rachel Reeves who has committed to reduce debt, “fix” the foundations of the economy and increase spending.

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Chancellor to rewrite fiscal rules

The public sector finance announcement is the first since her October budget.

Government outflows are unlikely to fall anytime soon with the budget anticipated to up spending by about £70bn over the next five years, according to analysis by independent forecasters the Office for Budget Responsibility (OBR).

When measured as a percentage of GDP, which tracks everything produced in the economy, debt was at 1960s levels.

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Australia consults on adopting OECD crypto reporting framework

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Australia consults on adopting OECD crypto reporting framework

Australia’s Treasury seeks input on implementing the crypto-asset reporting framework within its domestic tax laws. 

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Is Bitcoin heading back to $90K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23

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Is Bitcoin heading back to K? Solana ETFs, and more: Hodler’s Digest, Nov. 17 – 23

A crypto trader mulls over whether Bitcoin will retrace back to $90,000, Solana ETF filings flood in and more: Hodlers Digest

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Justice secretary’s assisted dying intervention is explosive – and potentially embarrassing for the PM

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Justice secretary's assisted dying intervention is explosive - and potentially embarrassing for PM

With six days to go before Friday’s historic Commons showdown on assisted dying, it’s the opponents who are turning up the heat.

The explosive attack on the bill by Shabana Mahmood follows the poignant and personal plea from Gordon Brown to MPs to reject the bill.

We knew the justice secretary is opposed to the bill. She has already made that clear. But her attack on it, in a letter to constituents, is brutal.

Read more: UK on ‘slippery slope’ to ‘death on demand’, warns justice secretary

She talks about a “slippery slope towards death on demand”. Savage. The state should “never offer death as a service”, she says. Chilling.

So much for Sir Keir Starmer attempting to cool the temperature in the row by urging cabinet ministers, whatever their view, to stop inflaming or attempting to influence the debate.

Ms Mahmood talks, as other opponents have, about pressure on the elderly, sick or disabled who feel they have “become too much of a burden to their family”.

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Details of end of life bill released

She hits out at a “lack of legal safeguards” in the bill and pressure on someone into ending their life “by those acting with malign intent”.

Malign intent? Hey! That’s quite an assertion from a secretary of state for justice and lord chancellor who’s been urged by the PM to tone down her language.

It’s claimed that Sir Keir ticked off Wes Streeting, the health secretary, after he publicly opposed the bill and launched an analysis of the costs of implementing it.

Read more: Where does the cabinet stand on assisted dying?

Will the justice secretary now receive a reprimand from the boss? It’s a bit late for that. Critics will also claim Sir Keir’s dithering over the bill is to blame for cabinet ministers freelancing.

Shabana Mahmood is the first elected Muslim woman to hold a cabinet post. Elected to the Commons in 2010, she was also one of the first Muslim women MPs.

She told her constituents in her letter that it’s not only for religious reasons that she’s “profoundly concerned” about the legislation, but also because of what it would mean for the role of the state.

But of course, she’s not the only senior politician with religious convictions to speak out strongly against Kim Leadbeater’s bill this weekend.

Gordon Brown. File pic: PA
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Gordon Brown. File pic: PA

Gordon Brown, son of the manse, who was strongly influenced by his father, a Church of Scotland minister, wrote about his opposition in a highly emotional article in The Guardian.

He spoke about the pain of losing his 10-day-old baby daughter Jennifer, born seven weeks prematurely and weighing just 2lb 4oz, in January 2002, after she suffered a brain haemorrhage on day four of her short life.

Read more: Gordon Brown says assisted dying should not be legalised

Mr Brown said that tragedy convinced him of the value and imperative of good end-of-life care, not the case for assisted dying. His powerful voice will strongly influence many Labour MPs.

And what of Kim Leadbeater? It’s looking increasingly as though she’s now being hung out to dry by the government, after initially being urged by the government to choose assisted dying after topping the private members bill ballot.

All of which will encourage Sir Keir’s critics to claim he looks weak. It is, or course, a private members bill and a free vote, which makes the outcome on Friday unpredictable.

But the dramatic interventions of the current lord chancellor and the former Labour prime minister are hugely significant, potentially decisive – and potentially embarrassing for a prime minister who appears to be losing control of the assisted dying debate.

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