Inflation's £5bn toll on Government coffers
Government borrowing jumped by far more than forecast last month as the Treasury battles the impact of higher inflation on the public finances.Figures from the Office for National Statistics (ONS) showed net borrowing, excluding state-owned banks, increased by £2bn to almost £6.9bn in June compared with the same month last year - a rise of 43%.The figures underline the scale of the challenge facing a politically-weakened Government wanting to balance the budget while facing demands from critics to loosen the purse strings, in particular by removing the pay cap from public sector workers.All this while the economy falters.Higher inflation - a consequence of the pound's weakness since the Brexit vote - has threatened Government coffers as it risks hitting taxes if businesses and consumers re...