Expenditure outpaced revenue growth as central government spending rose 5.0% to £103.1 billion, spurred by index-linked uplifts across both public benefits (£29.2 billion) and record August debt interest of £8.8 billion. Although current receipts rose 3.8% to £89.8 billion on strong income tax growth, overall revenue was tempered by weaker VAT receipts following the temporary "Great British Summer Savings" rate reduction. Meanwhile, public sector net debt reached £2,985.5 billion, remaining historically elevated near 1960s levels despite a modest decline in the debt-to-GDP ratio to 93.8% caused by faster nominal economic grow.
Expenditure outpaced revenue growth as central government spending rose 5.0% to £103.1 billion, spurred by index-linked uplifts across both public benefits (£29.2 billion) and record August debt interest of £8.8 billion. Although current receipts rose 3.8% to £89.8 billion on strong income tax growth, overall revenue was tempered by weaker VAT receipts following the temporary "Great British Summer Savings" rate reduction. Meanwhile, public sector net debt reached £2,985.5 billion, remaining historically elevated near 1960s levels despite a modest decline in the debt-to-GDP ratio to 93.8% caused by faster nominal economic grow.