In August, high inflation led to increased government finances, creating pressure on Chancellor Jeremy Hunt to boost support for state services, according to the Resolution Foundation. Government borrowing for August was £11.6 billion and nearly £70 billion for the first five months of the current fiscal year. This left the Chancellor £11.4 billion better off for 2023-24 than March's official forecasts had predicted. The Resolution Foundation noted that while higher inflation had led to increased tax payments, it had strained public services with pre-inflation budget allocations, making future public service cuts less tenable. Conservative backbenchers have opposed increasing department budgets in favour of tax cuts, while former prime minister Liz Truss has advocated tax cuts to stimulate economic growth. The borrowing figures highlight the need to manage inflation and government finances.