Government borrowing surged to £20.2 billion in September, marking the highest September total in five years. The figure piles additional pressure on Chancellor Rachel Reeves over management of the nation's public finances.
The September borrowing was £1.6 billion higher than the same month last year, according to the Office for National Statistics. Most economists had expected borrowing to reach £20.8 billion, making the actual figure fractionally lower than forecasts.
The figure marginally exceeded the £20.1 billion forecast made by the Office for Budget Responsibility in March. The independent fiscal watchdog's projections have proven largely accurate despite the slight variance.
Annual borrowing trends
Borrowing for the current financial year between March and September reached nearly £100 billion. The ONS confirmed this represents the second-highest amount since monthly records began in 1993.
Public sector net borrowing reflects the difference between government spending and tax income. The elevated figures underscore ongoing fiscal challenges facing the Treasury.
Economic factors driving costs
ONS chief economist Grant Fitzner explained the drivers behind the increased borrowing. "Last month saw the highest September borrowing for five years," Fitzner said.
"Debt interest, the cost of providing public services and benefits all increased compared with last year, more than offsetting the rise in receipts from central government taxes and national insurance contributions," he added. "Likewise, the first six months of the financial year saw the highest overall deficit since 2020."
Sources used: "PA Media" Note: This article has been edited with the help of Artificial Intelligence.
