“Today’s data shows that the government spent £80bn more than it took in from taxes and other receipts in the six months to 30 September 2024. This was the third highest on record, £7bn more than budgeted and £1bn more than in the first half of the previous financial year, emphasising the weak state of the public finances ahead of the new Chancellor’s first Budget next week.

“Public sector net debt hit £2,767bn, or 98.5% of GDP, on track to exceed £2.8tn by the end of the financial year, although updated GDP estimates resulted in debt falling back below 100% of GDP.

“While the Autumn Budget next week is technically about the plan for the next financial year, there will be significant attention on the updated estimates for the current financial year, and the extent to which the new Chancellor has been able to mitigate the £22bn black hole. We hope the Chancellor will use the Budget as an opportunity to fix the underlying debt measure to allow for an increase in the investment the UK needs for growth, as part of a long-term fiscal strategy that puts the public finances on a sustainable footing.”

ENDS

Notes to editors:

1. The reported monthly deficit in September 2024 of £16.6bn was £1.5bn higher than OBR’s March 2024 forecast of £15.1bn and £2.1bn more than the monthly deficit of £14.5bn in September 2023.
2. The cumulative deficit for the six months ended 30 September 2024 of £79.6bn, was £6.6bn higher than the OBR’s March 2024 forecast of £73.0bn and £1.2bn higher than the £78.4bn reported for the first half of 2023/24.
3. Public sector net debt on 30 September 2024 was £2,767bn or 98.5% of GDP, which compared with the OBR’s March forecast of £2,757bn or 99.0% of GDP, and £2,598bn or 94.5% of GDP at same point last year.
4. The £22bn ‘black hole’ identified by the Chancellor comprised £11.6bn in inflationary pressures on pay, £6.4bn for asylum and refugees, £2.9bn for additional rail subsidies, £2.6bn in unfunded policy commitments by the previous government, £1.7bn for Ukraine and £1.5bn for the NHS, less £4.8bn in unused reserve and other contingencies within the budget.