The latest UK public sector borrowing figures have worsened the government’s fiscal challenges significantly.
UK Government borrowing was higher than expected last month at £18 billion, the highest level since the pandemic.
The Office for National Statistics says it’s £3.5 billion higher than last year and exceeding economists’ predictions
Borrowing in the first five months of 2025-26 totalled £83.8 billion after the September number surged to £18bn – versus the Office for Budget Responsibility’s (OBR) March forecast of £12.5bn.
Borrowing is £16.2 billion above the same period last year and £11.4bn above the monthly OBR’s forecast.
The OBR states that ‘the overshoot in this month’s estimates compared to our March forecast profile is primarily due to revisions which have increased estimated borrowing by local authorities so far this year. In addition, VAT and other receipts were lower than expected in the month of August.’
The figures will put more pressure on the Chancellor Rachel Reeves for more tax rises in the November Budger
