DAVY VIEW

This morning’s UK public sector finances show borrowing was £20.5bn in August, almost 1% of GDP in just one month. Although, borrowing in the first half of the budget year 2021/22 is well inside official forecasts, Rishi Sunak still looks set to announce austerity measures and stricter fiscal rules on debt reduction in his October 27th Budget. The costly jobs furlough and self-employment support schemes are set to end in September despite significant numbers still reliant on the income supports.