US EditionUK Government borrowing surges to highest September figure in five years
- The Office for National Statistics reported UK public sector net borrowing rose to 20.2 billion in September 2025, the highest September figure in five years.
- Amid higher debt servicing, the ONS found inflation-linked bond payments cost the Treasury an estimated £20.8 billion last month, more than offsetting increased tax receipts.
- In the financial year to September 2025, overall borrowing reached £99.8 billion, £11.5 billion more than last year, while public sector net debt stands at £2.75 trillion and 95.3 per cent of GDP.
- Facing calls from the IFS, Chancellor Rachel Reeves confronts a difficult balancing act with limited fiscal headroom ahead of the Autumn Budget on November 26, expected to include tax rises and spending cuts.
- The yield on 10-year gilts plunged to 4.54%, down from 4.58%, while long-term borrowing costs recently stood at levels not seen since the last century, Professor Joe Nellis said.
60 Articles
60 Articles
Benefits set to rise by 4% as problems pile up for Reeves
Benefits are on track to be hiked by around 4 per cent next year – lower than the increase in the state pension – due to higher than expected inflation. The Treasury expects official figures will confirm September’s rate of inflation will rise from 3.8 per cent to 4 per cent – the highest since January last year – in figures released on Wednesday. The figures, which could cause higher government spending than planned, put even more pressure on C…
Inside Reeves’ Budget battle lines
For Rachel Reeves, last week’s IMF gathering in Washington DC offered a reprieve from domestic woes. The Chancellor, who noted at the British Embassy that she is the second longest-serving G7 finance minister, enjoyed admiring comments from counterparts about the trade deals the UK has struck with the likes of India. Back at the Treasury, Reeves must contend with less welcome realities: government borrowing reached a five-year high in September …
UK borrowing overshoot keeps the heat on Reeves as budget looms
Britain's borrowing in the first half of the financial year was the highest on record except during the height of the coronavirus pandemic, keeping up the pressure on finance minister Rachel Reeves as she prepares next month's key budget.
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