Particle.news
Download on the App Store
10 ARTICLES
·
3h ago

UK Borrowing Tops Forecast at £17.4 Billion as Retail Sales Slide Before Budget

Fresh ONS figures point to a fiscal squeeze facing Rachel Reeves ahead of next week’s Budget.

Britain's Chancellor of the Exchequer Rachel Reeves takes journalists' questions after delivering a speech in the media briefing room of 9 Downing Street, central London, on November 4, 2025, ahead of the forthcoming Budget. JUSTIN TALLIS/Pool via REUTERS/File Photo
Image
Image
Image

Overview

  • Public sector net borrowing hit £17.4 billion in October, the third-highest October on record and above City expectations and the OBR’s March projection for the month.
  • Borrowing for April to October reached £116.8 billion, about £9.9 billion higher than the OBR’s March forecast and the second-highest total for that seven‑month period on record.
  • The ONS reported £8.4 billion in debt interest in October, with analysts citing weaker tax receipts, higher inflation-linked benefits and interest on index-linked gilts as key drivers.
  • Retail sales volumes fell 1.1% in October and GfK’s November confidence gauge weakened, signaling softer household demand going into the peak shopping season.
  • This is the final public finances update before the 26 November Budget, with economists noting the OBR may not include these latest figures in its forecast and the Treasury stressing plans to reduce the primary deficit.