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Rising costs for public services and welfare benefits led to higher government borrowing than expected in July, official data showed.
Borrowing (the difference between spending and tax revenue) reached £3.1bn last month, the highest level for a July since 2021.
The increase was £1.1bn higher than most economists had forecast, fuelling speculation about what tax and spending decisions the chancellor will announce in his autumn budget.
The Office for National Statistics (ONS) also showed that the UK national debt remains at its highest level since the early 1960s.
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