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UK Borrowing Hits £20.2bn in September, Six-Month Total Overshoots OBR Forecast

Surging debt interest alongside welfare pressures tightens Rachel Reeves’s fiscal room before the 26 November Budget.

Overview

  • ONS reported September borrowing of £20.2bn, up £1.6bn year on year and the highest September since 2020.
  • Borrowing reached £99.8bn for April–September, £7.2bn above the OBR’s March forecast and the second-highest for this period on record.
  • Debt interest payments were £9.7bn in September, driven by RPI-linked costs, with public debt at 95.3% of GDP.
  • Think-tanks including the IFS urged larger fiscal consolidation to rebuild headroom as economists warn of likely growth and productivity downgrades.
  • The Treasury says it will cut borrowing and pursue efficiency and pro-growth measures, even as recent gilt yield declines provide only limited relief.