Rachel Reeves dealt 11th hour blow which could mean Budget tax hikes for Brits

A combination of worse-than-feared government borrowing and a big drop in retail sales has added to predictions of take hikes to come in the Budget

Chancellor Rachel Reeves was dealt a double blow ahead of next week’s Budget with official figures howing higher-than-expected government borrowing and a fall in shop sales last month.

The Office for National Statistics said public sector borrowing stood at £17.4billion in October, lower than a year ago but the third highest for the month since records began.

The figure was more than the £15billion expected by most economists and higher than the £14.4billion forecast in March by the UK’s independent fiscal watchdog, the Office for Budget Responsibility

The data adds to expectations of tax hikes by the Chancellor in the Budget on Wednesday