Government borrowing unexpectedly jumped last month to a level not seen since the early 1960s presenting Chancellor Rachel Reeves with a fresh dilemma ahead of the October budget. Borrowing rose to £13.7 billion last month marking the third-highest August on record, according to the latest figures from the Office for National Statistics. This was largely driven by higher spending on public services due to increased running costs and pay increases. This figure is £3.3 billion higher than last year and £2.5 billion higher than had been forecast by the Office for Budget Responsibility in March. T…