Rachel Reeves faces hard choices as borrowing higher than expected

Alex Kerr, UK economist at Capital Economics, said that government spending had been pushed up by wage increases for public sector workers.

Alex Kerr, economist at Capital Economics, said: “Overall, today’s release highlights the tight fiscal backdrop that the chancellor faces ahead of her first Budget on 30 October.”

Alex Kerr, at Capital Economics, the consultancy, said: “We think borrowing overshot the OBR’s forecasts once again in July, perhaps by £2.4 billion. That would probably fuel the narrative of the...