Public borrowing in the UK reached its highest September total in five years, nearly hitting £100 billion for the months from March to September. This figure marks the second-highest borrowing amount since 1993, amplifying scrutiny on Chancellor Rachel Reeves, who faces accusations of “losing control” over public finances, reports BritPanorama.
In September alone, public sector borrowing stood at £20.2 billion, outpacing last year’s figures by £1.6 billion and exceeding forecasts by £1.1 billion. This increase is attributed to rising debt servicing costs, wage increases, and inflation, compounding the pressures on government finances.
Chancellor Reeves has been urged to articulate a clear strategy to address the escalating financial challenges, particularly as the Treasury may need to bridge a £30 billion gap in funding during the upcoming Budget. Experts predict that borrowing could surpass established forecasts by as much as £10 billion for the current year, urging immediate action to avoid further debt accumulation.
Sir Mel Stride, the shadow Treasury minister, criticized the Labour government, stating, “Borrowing is soaring under this Labour government. Rachel Reeves has lost control of the public finances, and the next generation are being saddled with Labour’s debts.” He emphasized the need for Reeves to rein in spending and manage the deficit rather than increasing taxes.
Economic analysts, including Martin Beck from WPI Strategy, have also expressed concerns. “As things stand, total borrowing in 2025–26 could overshoot the OBR’s full-year forecast by around £10bn, pushing the deficit to close to 5% of GDP,” Beck noted. This level is deemed substantial for an economy currently near full employment.
Chief economist Grant Fitzner from the Office of National Statistics confirmed that last month marked the highest borrowing level for September since 2020, with debt interest and expenditure on public services rising significantly. Treasury Minister James Murray assured that the government remains committed to fiscal responsibility, stating, “We will never play fast and loose with the public finances.” Murray outlined plans to reduce borrowing and improve efficiency while allocating funds towards essential public services such as the NHS and education.
