FX.co ★ UK Public Borrowing Slightly Below Forecasts

In September 2025, the UK's public sector net borrowing, excluding the impact of public sector banks, expanded to £20.2 billion, up from £18.6 billion in the same month of the previous year. This figure fell short of market predictions, which had anticipated borrowing at £20.5 billion. This marks the highest September borrowing since 2020. Total public expenditure increased by £8.9 billion, attributed to elevated costs associated with delivering public services, social benefits, and servicing debt. Significantly, interest payments on central government debt reached unprecedented levels for any September in recorded history. Conversely, total revenue grew by £7.3 billion, driven by an increase in income from central government taxes and national insurance contributions. For the financial year leading up to September, borrowing accumulated to £99.8 billion, exceeding the Office for Budget Responsibility's (OBR) March prediction of £92.6 billion by £7.2 billion (7.8%). This makes it the second-highest year-to-date borrowing since records started in 1993, trailing only the pandemic period. The public sector net debt, excluding public sector banks, was 95.3% of the GDP.