UK government borrowing hits £24.5bn as debt interest costs surge
September deficit exceeds forecasts as inflation drives up interest payments on government debt ahead of budget announcement.
At a glance
- September budget deficit of £24.5bn exceeded expectations
- Debt interest payments of £10.9bn were the highest for September on record
- Rising inflation is driving up the cost of government borrowing
- Figures released ahead of the upcoming budget announcement
The UK government's budget deficit reached £24.5bn in September, higher than anticipated, according to official Treasury figures. The government paid £10.9bn in debt interest during the month, the highest September figure on record and only the eighth time monthly interest payments have exceeded £10bn.
The rise in borrowing comes as inflation continues to increase the cost of servicing government debt, adding pressure ahead of the budget announcement scheduled for next Wednesday.
Why it matters
Higher-than-expected borrowing and record debt interest payments constrain fiscal flexibility for the government as it prepares its budget and faces pressure to fund public services.
Original reporting
- The Guardian — WorldUK government borrowing rises to £24.5bn as John Healey prepares for budget
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.