Mubasher: UK public borrowing grew in the first half of the tax year, the Office for National Statistics’ (ONS) data showed on Tuesday.

The UK’s public sector net borrowing, excluding public-sector banks, came in at GBP 9.4 billion ($12.18 billion) last September, rising by GBP 600 million month-on-month.

“This is the first September year-on-year borrowing increase for five years,” the ONS said.

Six months since the start of the current tax year in April, borrowing was 21.6% year-on-year higher at GBP 40.3 billion.

Public sector net debt, excluding public banks, reached GBP 1.790 trillion at the end of last month, which was an equivalent to 80.3% of gross domestic product (GDP) rising by GBP 27.3 billion year-on-year, or a fall of 1.2% in the GDP.

At the end of last September, net debt excluding the Bank of England (BOE), rose by GBP 38.6 billion to GBP 1.611 trillion, or a 0.5% decline of the GDP.

Central government net cash requirement came in at GBP 32.9 billion in the current financial year to September, versus GBP 13.5 billion a year ago, the ONS said.

Tuesday’s data came as a confirmation to the UK government missing its target of keeping borrowing at below 2% of GDP in the fiscal 2020/21, owing to higher public spending and statistical revisions.

Prime Minister Boris Johnson pushes to pull the UK out of the European Union (EU) by 31 October after securing a new transition agreement from Brussels.

By 9:02 am, the GBP/USD pair fell by 0.17% to $1.2938, while EUR/GBP pair went up by 0.10% to GBP 0.8611.