Government borrowing third-highest record in October as people not spending – official figures

Government borrowing was higher than expected and consumers tightened their belts, spending less than anticipated, official figures show.

Government borrowing rose to the third-highest October level on record, though less than a year ago, according to the Office for National Statistics (ONS).

It’s the last assessment of public finances we’ll get before Chancellor Rachel Reeves makes her budget announcement next week. It showed spending on benefits and public services was up, which was offset by higher tax takes.

Public sector net borrowing reached £17.43bn, above the £15bn forecast by economists polled by Reuters.

Retail sales – how much people are spending – shrank 1.1% in the half-term month of October. No growth had been expected, rather than a contraction.

This matters as retail sales figures measure household consumption, the largest expenditure in the UK economy.

Consumers were holding back for Black Friday deals, retailers told the ONS.

This breaking news story is being updated and more details will be published shortly.

Please refresh the page for the latest version.

You can receive breaking news alerts on a smartphone or tablet via the Sky News app. You can also follow us on WhatsApp and subscribe to our YouTube channel to keep up with the latest new