Britain's public finances recorded a higher-than-expected deficit of '14.3 billion in February, according to official data. This was above the '8.5 billion predicted by economists and '2.2 billion more than the same month last year. The increase has raised concerns, especially with ongoing global tensions that could affect government spending plans.
The Office for National Statistics (ONS) said the rise was partly due to the timing of debt payments, with some costs falling in February instead of January. Meanwhile, January's surplus was revised higher to '31.9 billion, supported by stronger tax collections.
Chancellor Rachel Reeves has allowed more borrowing to fund long-term investment projects since 2024, while also increasing taxes to control everyday spending. Recent figures suggest some improvement, as the current budget deficit for the 11 months to February fell by 21.1% compared to the same period last year, reaching '62.1 billion.
Overall borrowing during this period stood at '125.9 billion. This is slightly below the full-year forecast of '138.3 billion made by the Office for Budget Responsibility, indicating that public finances may be performing better than expected despite monthly fluctuations.
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