Story perspectives
UK Borrowing Misstated by £3 Billion, Chancellor Faces Cuts
10/8/2025
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Story summary
- The Office for National Statistics (ONS) reports UK borrowing overstated by £3 billion.
- The misstatement stems from VAT data errors.
- Since January, monthly borrowing estimates have been off by £200m–£500m.
- Revised figures show borrowing for the year ending March 2025 is £1bn lower.
- Chancellor Rachel Reeves faces £20–£40bn in savings as HM Revenue and Customs acknowledged its role.
