UK public borrowing climbs to four-year high in September

Published 21/10/2025, 07:50

Investing.com -- UK public sector borrowing hit £20.2 billion in September, marking the highest September figure since 2020 as government debt continues to climb.

The Office for National Statistics reported Tuesday that borrowing was £1.6 billion (8.6%) higher than in September 2024, pushing public sector net debt to 95.3% of GDP - levels not seen since the early 1960s.

The current budget deficit, which covers day-to-day government activities, reached £13.4 billion in September. For the first six months of the financial year, total borrowing has reached £99.8 billion - 13.1% higher than the same period last year and the second-highest April-to-September borrowing since monthly records began in 1993.

Central government debt interest costs surged to £9.7 billion in September, including £2.7 billion linked to inflation through index-linked gilts. This reflects the 0.4% increase in the Retail Prices Index between June and July 2025.

Public sector net financial liabilities stood at 83.8% of GDP at the end of September, 3.0 percentage points higher than a year earlier.

The government faces significant fiscal challenges as it works toward its target of bringing the current budget into surplus by March 2030 and reducing public sector net financial liabilities relative to GDP.

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