UK Posts Bigger-Than-Forecast Budget Deficit on Debt Costs

Britain borrowed more than forecast in February, boosted by a surge in debt-interest costs even before turmoil hit bond markets following the outbreak of war in the Middle East.

Spending exceeded tax revenue by £14.3 billion ($19.2 billion) as the Treasury paid out more interest than in any February on record, the Office for National Statistics said on Friday. The deficit was higher than the £8.8 billion shortfall predicted by economists and double the forecast the Office for Budget Responsibility made in November.