Budget 2024 latest: UK borrowing swells due to public sector pay rises as benefits payments hit two-year low
Speculation is mounting ahead of 30 October
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Rachel Reeves will announce Labour’s first Budget since coming into power on 30 October, leading one of the most anticipated fiscal events in over two decades.
Ahead of her announcement, government borrowing rose to £16.6 billion last month marking the third highest September borrowing since records began, according to the Office for National Statistics (ONS).
This has brought borrowing in the year to date to £79.6 billion – £6.7 billion more than forecast by the Office for Budget Responsibility. The ONS says public sector pay rises contributed to the unexpected rise.
The public finance figures won’t be welcomed by the chancellor, but official sources have said they demonstrate the need for fiscal prudence at the upcoming Budget.
Treasury Chief Secretary Darren Jones said the state of the public finances meant there would be “difficult decisions” to be made.
The ONS figures also show that spending on benefits is down to a two-year low, decreasing by £2 billion to £25.7 billion. The department says a large part of this is due to the cutback of winter fuel payments and removal of cost of living payments.
Reports indicate that the government still intends to reduce welfare spending by £3 billion a year.
We’ll be bringing you all the latest updates ahead of the big event on 30 October here, on The Independent’s liveblog.
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Reeves considers raising tax on vaping in Budget
Rachel Reeves is considering raising the tax on vaping products in the upcoming Budget as figures lay bare how many children access them in the UK, The Guardian reports.
The tax on vaping products was originally announced by the Conservatives in March, to come in to force in 2026. It is now understood that Ms Reeves could look to increase this.
Under current plans, the new rates from April 2026 will range from £1-3 per 10ml of liquid, depending on nicotine level.
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