UK September borrowing at 20.2 billion ahead of Budget on 26 November

UK government borrowing rose to 20.2 billion in September, the highest September total in five years, official figures show, adding to fiscal challenges as Chancellor Rachel Reeves prepares a Budget on 26 November. The Office for National Statistics said borrowing for the month was 1.6 billion higher than a year earlier, and borrowing in the first six months of the 2025/26 financial year reached 99.8 billion, the second highest April to September total on record.

The ONS said the rise in borrowing reflected higher debt interest payments and increased spending on public services and benefits that more than offset higher receipts from taxes and national insurance. Debt interest payments last month totaled 9.7 billion, and public sector debt stood at 95.3 percent of gross domestic product, about one percentage point higher than a year earlier. The current budget deficit was reported at 71.8 billion.

"Last month saw the highest September borrowing for five years," ONS chief economist Grant Fitzner said, noting that rising debt interest and the cost of public services contributed to the increase. Analysts had generally expected a slightly larger monthly borrowing outturn than...