UK Government Borrowing Hits Five-Year High in September Ahead of Autumn Budget

UK government borrowing surged to £20.2 billion in September 2025, marking the highest September borrowing in five years and a £1.6 billion increase from the previous year, according to the Office for National Statistics (ONS). This sharp rise reflects increased debt interest and higher spending on public services and benefits, which outweighed the gains from tax and national insurance revenues. Total borrowing for the financial year to September reached nearly £100 billion, the second-highest since records began in 1993, placing significant pressure on Chancellor Rachel Reeves ahead of her autumn budget. Reeves is expected to propose tax hikes and spending cuts between £20 billion to £30 billion to address the persistent borrowing and public finance challenges. Treasury officials emphasized plans to reduce borrowing through cutting waste, improving efficiency, and transforming public services to reduce costly debt interest. Despite the borrowing concerns, UK and European stock markets showed modest gains, while the pound weakened slightly against the US dollar.