UK debt tops £3 trillion as borrowing exceeds forecasts

UK public sector debt exceeded £3 trillion in September, while government borrowing rose above forecasts and annual inflation accelerated to 3.5%, official figures showed on October 21. The data add pressure on Chancellor John Healey ahead of his Budget, scheduled for October 28. The Office for National Statistics estimated debt at about 94% of gross domestic product, down from roughly 95% a year earlier. The figures mark a rise in the cash value of government debt even as its size relative to the economy declined. Public sector net borrowing reached £24.5 billion in September, £1.8 billion more than in the same month last year and about £1.9 billion above the Office for Budget Responsibility’s forecast. The ONS also reported that borrowing over the first six months of the 2026-27 financial year totalled £97.8 billion. That was £4.4 billion below the same period a year earlier but about £6 billion above the watchdog’s forecast. Debt-interest payments were £10.9 billion in September. The ONS said inflation-linked government bonds contributed to rising costs, adding £4 billion to debt interest that month. Such bonds adjust payments in line with inflation measures, putting...