Chancellor Rachel Reeves has been put under further pressure over the state of the nation’s finances ahead of next week’s Budget as the latest official figures showed higher-than-expected government borrowing last month.

The Office for National Statistics (ONS) said public sector borrowing stood at £17.4 billion last month, £1.8 billion lower than a year ago but the third highest level for October since records began.

The figure was more than the £15 billion expected by most economists and higher than the £14.4 billion forecast in March by the UK’s independent fiscal watchdog, the Office for Budget Responsibility (OBR).

Borrowing for the seven months of the financial year to date was £116.8 billion, estimated at 3.9% of the UK’s economic output.

The year-to-date figures is £9 billi

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