UK Government borrowing in September hit the highest level for the month in five years, piling more pressure on Chancellor Rachel Reeves over the nation’s public purse.
Public sector net borrowing rose to £20.2 billion for the month, £1.6 billion higher than in September 2024, the Office for National Statistics said.
Most economists were expecting borrowing to total £20.8 billion in September, higher than the £20.1 billion the UK’s independent fiscal watchdog, the Office for Budget Responsibility (OBR), forecast in March.
Borrowing – the difference between public spending and tax income – in the current financial year, between March and September, was nearly £100 billion, the second-highest amount since monthly records began in 1993, the ONS said.
ONS chief economist Grant Fitzner said: “Last month saw the highest September borrowing for five years.
“Debt interest, the cost of providing public services and benefits all increased compared with last year, more than offsetting the rise in receipts from central government taxes and national insurance contributions.
“Likewise, the first six months of the financial year saw the highest overall deficit since 2020.”
