Borrowing figures leave George Osborne needing miracle to hit deficit target

“Terrible” borrowing figures have put Chancellor George Osborne on course for embarrassment in next week’s Autumn Statement, amid predictions he could miss his deficit-cutting target by more than £10 billion.

Borrowing during October shot up to £8.2 billion — £1.1 billion higher than the same time last year when most experts were pencilling in a £1.1 billion fall to £6 billion for the month.

In the seven months of the financial year so far cumulative borrowing is £54.3 billion.

While 10.9% below last year, it means the Chancellor now needs a miracle to hit the Office for Budget Responsibility’s £69.5 billion deficit target for the full year.

The Office for National Statistics put the rise almost entirely down to a £2.9 billion rise in central government borrowing over the month.

Pantheon chief UK economist Samuel Tombs said the deficit could hit £80 billion this year, adding that the “terrible borrowing figures provide a grim backdrop to the Autumn Statement”.

He said: “Barring revisions, borrowing would have to be an implausible 48% lower year-over-year in the second half of this fiscal year in order for the current official forecast to be met.”