HEFTY pay rises for public sector workers pushed the Government’s debt bill up £4.1billion more than expected.
Borrowing last month his £17.4billion – the second highest October since records began in 1993 and far beyond the £13.3billion forecast by economists.
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Chancellor Rachel Reeves was last night criticised for handing bumper salary boosts to striking union members like junior doctors and train drivers.
Shadow Chancellor Mel Stride said: “They are a direct result of Labour’s decision to hand out inflation busting pay rises to their union paymasters without any reforms in return.”
Interest payments on debt also shot up to £9.1billion last month in the worst October since monthly figures began in 1997.
Downing Street said they expected borrowing to rise as they set about plugging a £22billion “black hole” in the public finances.
The Chancellor claimed to have found a series of financial timebombs left by the Tories that she claimed forced her to make tough choices on spending.
In a controversial move Ms Reeves also axed winter fuel payments from OAPs who do not receive pension credit.
But Ms Reeves did announce inflation-busting pay rises of 5.5 per cent for public sector workers such as teachers, soldiers, police officers and civil servants.
And junior doctors are in line for a monster 22 per cent wage hike over two years in a bid to end their persistent strike action that is crippling hospitals.
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