Rachel Reeves has been warned her tax rises are creating an 'economic doom loop' after 'out of control' public spending sent borrowing to the highest level since the outbreak of Covid-19.
In a bleak report ahead of the Budget in November, the Office for National Statistics revealed the Government borrowed £18billion last month alone as it spent more on the state than it raised in tax.
That was £5.5billion higher than forecast by the Office for Budget Responsibility (OBR) and took borrowing for the first five months of the fiscal year to £83.8billion.
The shortfall so far this year is the biggest since the onset of the pandemic in 2020 which forced the Tory government into huge spending to prop up the economy.
Senior Tory Robert Jenrick warned: 'I'm absolutely terrified that unless Rachel Reeves changes course very quickly, we'll see a financial crisis.'
