Government borrowing higher than expected in October

Government borrowing was much higher than expected in October, official figures show.

Borrowing – the difference between spending and tax take – was £17.4bn last month, the second highest October figure since monthly records began in 1993.

The borrowing figures are the first to be released since Chancellor Rachel Reeves’ first Budget last month.

The Budget is set to increase government spending by almost £70bn a year over the next five years, with half funded through higher taxes and the rest coming through higher borrowing.