Britain is slowly drowning in debt. Figures just released by the Office for National Statistics (ONS) show that in the financial year to July the state had to borrow £60 billion to tread water. That’s £6.7 billion more than by July last year and the third highest borrowing total for this period of the year since records began 32 years ago. Statisticians also managed to find almost another billion pounds in debt payments that now need to be added to the previous month’s figures. 

When the Bank cut interest rates, something alarming happened in the borrowing markets

There was better news, though, when looking at the month of July alone, with borrowing coming in at £1.1 billion, which was £2.3 billion less than the same month last year and the lowest July figure for three years. Crucially for the Chancellor Rachel Reeves it was also more than £2.1 billion less than forecast for the Office for Budget Responsibility in March. 

The surprising good news for Reeves was thanks to strong tax revenues flowing into HMRC. GDP growth that has outperformed expectations at the start of the year........

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