UK forced to borrow more than expected as soaring inflation bites

Budget deficit drops to 20.5bn in August but is offset by high interest payments on national debt

UK government borrowing increased by more than expected in August as rising inflation pushed up debt interest payments.

The Office for National Statistics said the government's budget deficit - the gap between spending and income - dropped to 20.5bn in August from about 26bn in the same month a year earlier as Britain's economy recovers from lockdown.