The rising cost of public services and benefits has driven government borrowing to higher levels than expected in July, official figures show.
Borrowing, the difference between spending and tax income, hit £3.1bn last month, the highest level for July since 2021.
The increase was £1.1bn higher than what most economists had predicted, leading to speculation about what tax and spending decisions the chancellor will announce at the autumn Budget.
The Office for National Statistics (ONS) also revealed the UK’s national debt remained at its highest level since the early 1960s.