Business · Economy · 2 hrs ago
UK government borrowing reaches £24.5bn ahead of budget
The UK government borrowed £24.5bn in September, more than forecasters expected and up from £17bn in August.
The figures come just before Chancellor John Healey presents his first budget next week.
Government debt interest hit a September record of £10.9bn, as inflation increased payments on some bonds linked to retail prices.
The Iran war has pushed up energy costs, and the statistics office said this added £4bn to interest costs in September.
Total government debt reached £3tn, though it fell slightly as a share of the economy, to 94% from 95% a year earlier.
So far this financial year, borrowing is below last year’s level but still above official forecasts.
The higher costs add pressure to Healey’s budget, as he has said he will follow the government’s fiscal rules and is expected to have less room to spare under them.
UK government borrowing reached £24.5bn last month, above forecasts.
The deficit was £1.9bn higher than the Office for Budget Responsibility had forecast.
The government paid £10.9bn in debt interest, the highest September figure since records began.
The Office for National Statistics said inflation linked to rising energy costs added £4bn to debt interest in September.
The figures come ahead of Chancellor John Healey’s first budget next week.
- Who
- The UK government. Chancellor John Healey is preparing to deliver his first budget.
- What
- Government borrowing reached £24.5bn, exceeding forecasts.
- When
- Last month, identified as September in the Guardian article. The figures were published on 21 October 2026.
- Where
- The United Kingdom.
- Why
- Rising inflation pushed up interest paid on government debt. The Guardian said the Iran war had raised energy costs and contributed to higher inflation.
This story does not have two clearly opposing sides.
The government paid £10.9bn in debt interest, while borrowing reached £24.5bn.
Public sector net borrowing totalled £97.8bn, £4.4bn lower than the same period last year but £6bn above the OBR forecast.
The ONS figures were reported ahead of the budget.
John Healey is due to deliver his first budget.
- Monthly borrowing
- £24.5bn
- September debt interest
- £10.9bn
- September borrowing above OBR forecast
- £1.9bn
- Borrowing so far this financial year
- £97.8bn
- Government debt
- Estimated to have reached £3tn
- Debt as a share of the economy
- 94%, down from 95% a year earlier
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What people are saying
Borrowing in the first six months of the current financial year remained below the same period last year, thanks to higher receipts, although it was still above the official forecast.
Preliminary figures suggest that although debt in cash terms continues to rise, as a proportion of GDP it has fallen over the year.
On this latter basis it remains at levels last seen in the early 1960s.