MNI BRIEF: UK Government's Sept Borrowing At 5-Year High - ONS

UK government borrowing was GBP20.2 billion in September, GBP1.6 billion (or 8.6%) more than the same period last year and the highest September borrowing since 2020, the Office for National Statistics said Tuesday.

Borrowing in the financial year-to-date was GBP99.8 billion, GBP11.5 billion (or 13.1%) more than in the same six-month period of 2024. It is the second-highest April to September borrowing since monthly records began in 1993, after that of the early Covid period in 2020, putting further pressure on Chancellor @Rachel Reeves ahead of the Nov 26 Budget.

Public sector net debt ex-banks was a provisional 95.3% of GDP, 1.0 percentage point more than at the end of last September. Public sector net financial liabilities (PSNFL) were provisionally estimated at 83.8% of GDP, 3.0 percentage points more than last year. (see MNI INTERVIEW: UK Debt Stabilisation Insufficient - NIESR Head )

“Last month saw the highest September borrowing for five years. Debt interest, the cost of providing public services and benefits all increased compared with last year, more than offsetting the rise in receipts from central government taxes and National Insurance contributions," ONS chief economist Grant Fitzner said. (see MNI INTERVIEW: UK Consumer Savings Still Drag on Economy- ONS )