John Healey, in his first month as Chancellor, oversaw an unexpected deficit in public sector finances. New figures released on Friday show that government borrowing stood at £1.8bn in July.
This figure was contrary to market expectations, which had anticipated no difference between expenditure and receipts for the month. It also exceeded an estimate for borrowing by the fiscal watchdog.
Grant Fitzner, ONS chief economist, noted that while public sector borrowing for the financial year to date was lower than last year, July's borrowing was slightly higher than in July last year. This was attributed to spending growth outpacing higher receipts, including from self-assessed taxes.
The ONS also reported that public sector debt remained below £3 trillion. Debt interest payments in July amounted to £7.7bn.
This data is among the last sets of statistics Chancellor Healey will review before his first Budget on 28 October.