Rising expenses from debt interest and welfare commitments are pushing the UK’s public finances deeper into deficit as Rachel Reeves prepares to unveil her forthcoming budget.
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Analysis: Reeves confronts formidable obstacles in crafting a budget amid soaring borrowing levels
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Business news – recent key updates
In September, government borrowing in the UK surged to its highest point in five years, driven by increasing costs associated with servicing debt and welfare spending, which have exacerbated the fiscal deficit.
According to figures published by the Office for National Statistics (ONS), public sector net borrowing-the shortfall between government income and expenditure-climbed to £20.2 billion in September. This amount is £1.6 billion higher than the same month last year and represents the largest borrowing total for September since 2020.
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