UK borrowing overshoot darkens backdrop for Healey's budget

MANCHESTER, England, Sept 22 (Reuters) - Britain's government borrowed more than expected in August, pushing the deficit for the financial year so far further above official forecasts and adding to a tough backdrop for finance minister John Healey ahead of his first budget.

The Office for National Statistics (ONS) on Tuesday reported public sector net borrowing of £18.3 billion ($24.5 billion) in ⁠August.

The figure was above all forecasts in a Reuters poll of economists which had pointed to a £15.5 billion deficit.

The ONS also revised up borrowing for each of the previous four months of the 2026/27 financial year, with the April-August cumulative deficit standing at £77.3 billion pounds.

While that was £2.2 billion less than at the same point in 2025/26, it was £8.1 billion higher than ⁠the Office for Budget Responsibility (OBR) -- whose forecasts underpin Healey's tax and spending plans -- had expected at this point in the year.

An ONS statistician said that while tax receipts had looked strong, this ⁠had been offset by rising government spending on goods and services and welfare benefits linked to inflation.

The current budget deficit -- or the ⁠difference between day-to-day spending and tax revenue and which the government must balance in 2029/30 -- stood at £51.9 billion in ⁠the year to date.

Again, that was higher than the OBR's forecast for £47.1 billion at this point in the year.

($1 = 0.7474 pounds)

Reporting by Andy Bruce; Editing by Kate Holton

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