Big October deficit puts Hammond’s UK budget goal in doubt
An analyst warns that the deficit eats into the leeway saved in case of a damaging Brexit outcome
London — Britain ran up a much larger budget deficit than expected in October, leaving Chancellor of the Exchequer Philip Hammond at risk of missing a borrowing target announced in October when he promised voters an easing of austerity. The deficit in October rose to £8.820bn from £7.235bn a year earlier, official data showed, marking the biggest October shortfall for three years. A Reuters poll of economists had pointed to a reading of £6.15bn. While tax receipts continued to grow, government spending increased compared with a year ago, the office for national statistics said, citing notable growth in expenditure on goods and services, as well as social benefits. “October’s data paints a difficult picture for [Hammond],” Yael Selfin, chief economist at accountants KPMG UK, said. “This increase in the deficit eats into the projected room that [Hammond] saved in case of a damaging Brexit outcome.” Prime Minister Theresa May last week agreed on a draft withdrawal deal with Brussels. B...
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