UK Treasury on course to exceed this year's deficit target by £16bn

Photo of UK Treasury on course to exceed this year's deficit target by £16bn
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Economic slowdown and spiralling cost of student loans will force government to break its deficit rule

The government is on course to overshoot its deficit target this year by £16bn after a series of spending pledges, a slowdown in the economy and the spiralling cost of student loans stripped the Treasury of £43bn.

The Resolution Foundation, an independent thinktank, warned that the £27bn of spending “headroom” set aside by former chancellor Philip Hammond in March to cope with the costs of Brexit had evaporated over the last six months, leaving the government with a hefty deficit.

Related: Tories increase borrowing by 28% as possible election looms

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