Tue, 21 Oct 2025

Tue, 21 Oct 2025 Highest government borrowing in September for five years

Higher interest payments offset increased revenue from tax and national insurance, the UK statistics body says.

* Borrowing increased by £1.6bn compared to last year's September figure, mainly due to higher debt interest payments.
* Total borrowing over first six months of financial year has reached £99.8bn, second-highest total since 1993 and £7.2bn more than predicted.
* Chancellor Rachel Reeves expected to raise taxes in November's Budget to meet self-imposed rules for government finances.
* Borrowing costs have been easing on financial markets, with long-term borrowing costs falling below 5% in recent months.
* Government announces measures to boost economic growth, including reforms to scrap paperwork and red tape.
* Public sector debt now estimated at 95.3% of GDP, levels not seen since early 1960s.
* Shadow chancellor Mel Stride claims Labour government has "lost control" of public finances.
* Liberal Democrat Treasury spokeswoman Daisy Cooper says "alarm bells should be ringing for the government ahead of the Budget".
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