September borrowing at highest level in five years

UK GOVERNMENT borrowing in September hit the highest level for the month in five years, piling more pressure on Chancellor Rachel Reeves over the nation's public purse.

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Public sector net borrowing rose to £20.2bn for the month, £1.6bn higher than in September 2024, the Office for National Statistics said.

Rising debt interest costs, pay rises and inflation increasing the government's day-to-day running costs, and inflation-linked benefit increases all helped push up the government's deficit last month.

This more than offset the amount that was raised through tax and national insurance.

The figure means the government spent more on the public sector than it received in taxes and other income in September, requiring it to borrow billions of pounds. September's borrowing was lower than the amount most economists had been expecting at £20.8bn.