Britain's public finances have taken an unexpected turn for the worse, with government borrowing significantly exceeding forecasts last month, according to fresh data from the Office for National Statistics.
The figures reveal borrowing reached £15.2 billion in September, substantially higher than the £13.5 billion predicted by the Office for Budget Responsibility. This development presents an immediate fiscal challenge for Chancellor Rachel Reeves, who faces tough decisions on spending and taxation.
Market Jitters and Tech Disruption
The borrowing news emerged alongside significant turbulence in the technology sector. A major outage at Amazon Web Services caused widespread disruption to businesses globally before being resolved hours later.
The incident affected numerous online services and platforms, highlighting the economy's growing dependence on cloud computing infrastructure. Many companies reported service interruptions and transaction failures during the peak of the outage.
Bank of England in Focus
Financial markets are now closely watching the Bank of England's next moves. The combination of concerning borrowing figures and technology sector instability creates a complex backdrop for monetary policy decisions.
Analysts suggest the higher-than-expected borrowing could influence the timing of any interest rate adjustments, with the central bank walking a tightrope between supporting economic growth and maintaining fiscal discipline.
Meanwhile, stock markets showed mixed reactions to the day's developments, with technology shares particularly volatile following the AWS incident.
