Government borrowing hits £20bn

It’s also the second highest set of September borrowing since monthly records began in 1993, only exceeded by the level of borrowing in 2020 - which was during the height of the Covid-19 pandemic. Additionally, the £20bn figure was £5.2bn more than the £14.8bn forecast by the Office of Budget Responsibility (OBR).

September 2022 also saw central government day-to-day expenditure hit £79.3bn - £5.8bn more than in September 2021. This largely reflected a £2.5bn increase in debt interest payable, and a £4.4bn increase in net social benefit payments - although this was partially offset by a £1.4bn reduction in subsidy payments. 

Central government receipts, meanwhile, were estimated to have cost £71.2bn - £7bn more than in September 2021. Of these, tax revenue increased by £4.5bn to £52bn. 

Looking at the central government receipts in the financial year to September 2022, this hit £436.4bn - £53.1bn more than a year earlier. Of these, tax receipts were £319.8bn, which was £35.8bn more than in the financial year to September 2021. 

Alongside this, central government bodies spent £466.5bn on day-to-day expenditure in the financial year to September - which was £11.1bn more than in the same six-month period last year. 

In response, chancellor Jeremy Hunt said: "Strong public finances are the foundation of a strong economy. To stabilise markets, I’ve been clear that protecting our public finances means difficult decisions lie ahead. 

"We will do whatever is necessary to drive down debt in the medium term and to ensure that taxpayers’ money is well spent, putting the public finances on a sustainable path as we grow the economy."