Consumer prices rise by more than expected while government’s debt interest payments surge to record high for September

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Inflation surged to 3.5% last month while the government deficit was a worse-than-forecast £24.5bn, in a double dose of bad news for John Healey before next week’s budget.

The Office for National Statistics said annual inflation rose from 3.1% in August, overshooting City forecasts of a rise in the consumer prices index (CPI) to 3.4%, as a result of the surging cost of fuel.

Sadiq Khan says upgrade would unlock station’s true potential and allow it to live up to its name

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Stratford International train station in east London will receive funding in next week’s budget, according to reports, putting it on track to live up to its name and become a hub for cross-Channel services.

London’s mayor, Sadiq Khan, has been making a case to ministers for funding to upgrade the station to allow it to start running international rail services.

Government paid £10.9bn in debt interest, the highest September figure since records began

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The Treasury ran a higher than expected budget deficit of £24.5bn last month as rising inflation pushed up the interest paid on government debt, increasing pressure on John Healey before his budget next week.

Official figures show the government paid £10.9bn in debt interest: the highest September figure since records began, and only the eighth time the monthly number has been above £10bn.