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Public sector pay rises also added to government spending – and thus borrowing – last month.

Today’s public finances report says:

Central government departmental spending on goods and services increased by £2.6bn to £35.9bn, as pay rises and inflation increased running costs

This was because the interest payable in September 2023 was exceptionally low at £0.9 billion, rather than that of September 2024 being unusually high.