UK government borrowing in the first six months of its current financial year rose 13.1% to almost £100 billion, according to the UK’s Office for National Statistics (ONS).
UK borrowing in the financial year to September 2025 was £99.8 billion — £11.5 billion (13.1%) more than in the same six-month period of 2024 and the second-highest April to September borrowing since monthly records began in 1993, after that of 2020.
The ONS said public sector net debt excluding public sector banks (PSND ex) was provisionally estimated at 95.3% of gross domestic product (GDP) at the end of September 2025 — levels last seen in the early 1960s.
The UK’s public sector net debt has risen to around £2.916 trillion.
UK government borrowing was £20.2 billion in September alone — £1.6 billion (8.6%) more than in September 2024 and the highest September borrowing since 2020.
The UK’s current budget deficit was £13.4 billion in September alone — taking the total current budget deficit in the financial year to September 2025 to £71.8 billion — £10.6 billion (17.2%) more than in the same six-month period of 2024.
UK central government’s current receipts were £86.2 billion in September 2025, £6.8 billion (8.6%) more than in September 2024.
However, central government’s current expenditure was provisionally estimated as £90.6 billion in September 2025, £8.1 billion (9.8%) more than in September 2024. Central government debt interest payable in September alone increased £3.8 billion to £9.7 billion.
REACTION:
Steve Clayton, head of equity funds, Hargreaves Lansdown: “Much of the increase is down to the rising cost of servicing the government’s existing borrowings, highlighting the fragility of the government’s position.
“It basically needs to borrow more money to pay the interest on the money it has already borrowed. Without an uptick in tax revenues or a decrease in interest rates, this situation will not go away.”
Kathleen Brooks, research director at XTB: “One reason for this is that the surge in borrowing last month is partly due to a 66% increase in debt interest payments to £9.7bn, which was a result of the surge in the retail price index in July, which increased the cost of servicing inflation-linked bonds. No wonder the government isn’t winning any extra supporters: they are borrowing more to fund previous borrowing, which is a debt doom loop.
“The way out of this is not easy, but it does require getting professionals into the Treasury to restructure and manage the inflation-linked portion of UK government debt, because this is causing a huge fiscal burden and it could also turn into a political problem for the UK.”
Richard Carter, head of fixed interest research at Quilter Cheviot: “The UK economy is in a fragile state, but for now does not appear to be showing signs of breaking. Indeed, comparative economies are having similar, if not worse, problems from a political and economic standpoint.
“However, today’s figures show that increased borrowing from this level is simply not an option given the yield premium UK debt comes with, along with its own inflation problem. Therefore, if Reeves and the Treasury are to bring borrowing down, a combination of tax rises and spending cuts are required.
“The former appears to be nailed on at November’s Budget, but how willing this Labour government is to cut spending remains to be seen. Previous episodes suggest not very.”