UK government deficit widens unexpectedly in August

Results likely to frustrate chancellor as he prepares to fund pledge for 20bn annual rise in NHS spending by 2023-24

The UK government deficit widened unexpectedly in August, handing Philip Hammond disappointing news ahead of the autumn budget.

Public sector net borrowing last month, excluding the nationalised banks, grew by 2.4bn to 6.8bn compared with August a year ago, according to the Office for National Statistics.

The deficit is the shortfall between government income and spending as measured each month by the Office for National Statistics. Tax receipts make up the vast majority of income, while spending on welfare, schools, healthcare and pensions make up most of its outgoings.