UK Government Borrowing Hits Five-Year High at £20.2 Billion in September

UK Government borrowing in September 2025 surged to £20.2 billion, the highest level for that month in five years and a £1.6 billion increase compared to the previous year, according to the Office for National Statistics. This borrowing level, second only to figures seen during the 2020 pandemic, has intensified pressure on Chancellor Rachel Reeves ahead of the autumn Budget, with concerns rising about the sustainability of public finances. Key factors driving the increased deficit include rising debt interest costs, public sector pay rises, inflation, and inflation-linked benefit increases, which have outweighed the revenue from taxes and national insurance. Critics, particularly from the Conservative party, accuse Reeves of losing control over public finances and warn of potential tax hikes to cover the rising debt, while government officials stress plans to reduce borrowing through spending cuts and efficiency improvements. The borrowing between March and September reached nearly £100 billion, marking the second-highest amount since monthly records began in 1993. Economists and officials alike highlight the gravity of the fiscal situation, emphasizing the need for measures to manage the growing deficit and associated costs.