UK borrowing reaches five-year high for September at £20.2bn

<p>Rising debt interest and welfare costs push public finances deeper into red before Rachel Reeves’s budget</p><ul><li><p><a href="https://www.theguardian.com/business/2025/oct/21/rachel-reeves-budget-borrowing-public-finances-tax-rises">Analysis: Reeves has mountain to climb in budget after borrowing rise</a></p></li><li><p><a href="https://www.theguardian.com/business/live/2025/oct/21/uk-borrowing-outstrips-forecasts-reeves-amazon-web-services-outage-resolved-bank-of-england-stock-markets-business-live-news">Business live – latest updates</a></p></li></ul><p>Government borrowing was the highest for five years in September after rising debt interest costs and higher welfare payments pushed the public finances deeper into the red.</p><p>Figures from the <a href="https://www.theguardian.com/uk/office-for-national-statistics">Office for National Statistics</a> (ONS) showed public sector net borrowing – the difference between public spending and income – hit £20.2bn last month, up £1.6bn from the same month last year and the highest September borrowing since 2020.</p> <a href="https://www.theguardian.com/business/2025/oct/21/uk-borrowing-high-september-debt-public-finances-rachel-reeves">Continue reading...</a>