UK public debt exceeds £3 trillion ahead of Budget

Summarised from 4 outlets · 5 reports · Updated 21 Oct, 07:50 · Archive

UK public debt exceeded £3 trillion in September, official figures show, one week before Chancellor John Healey's maiden Budget.

UK public debt exceeded £3 trillion in September, according to official statistics released one week before Chancellor John Healey's first Budget. The milestone underscores the fiscal constraints facing the government as it prepares its spending plans.

Government borrowing in September totalled £24.5 billion, rising £1.8 billion compared with the same month last year. The figure exceeded Office for Budget Responsibility forecasts by £1.9 billion and surpassed the £24.1 billion economists had widely predicted. Debt interest payments over the month reached £10.9 billion, reflecting pressure in bond markets as gilt yields rose to their highest levels this century.

As a proportion of gross domestic product, public sector debt stood at 94 per cent, approximately 0.7 percentage points lower than the previous year. Though debt in cash terms continues to rise, ONS chief economist Grant Fitzner noted that 'on this latter basis it remains at levels last seen in the early 1960s'. Borrowing in the first six months of the current financial year remained below the same period last year thanks to higher receipts, though it was still above the official forecast.

The government has spent more than £200 billion on debt interest payments since the 2024 election. Healey faces pressure to balance relieving cost burdens for businesses and households whilst meeting the borrowing targets he has set himself with narrow margins. He is expected to increase bank taxes as higher borrowing costs constrain fiscal headroom.

How it is being reported

• Government borrowing rises above forecasts to £24.5bn ahead of BudgetThe Office for National Statistics (ONS) reported that public sector net borrowing rose by £1.8 billion to £24.5 billion for September.Independent Business · 21 Oct, 08:08
• UK government borrowing rises to £24.5bn as John Healey prepares for budgetGovernment paid £10.9bn in debt interest, the highest September figure since records began Business live – latest updates The Treasury ran a higher than expected budget deficit of £24.5bn last month as rising inflation pushed up the interest paid on government debt, increasing pressure on John Healey before his first budget next Wednesday. Official figures show the government paid £10.9bn in debt interest: the highest September figure since records began, and only the eighth time the monthly number has been above £10bn. Continue reading...Guardian World · 21 Oct, 07:48
• Government borrowing rises above forecasts to £24.5bn ahead of BudgetThe Office for National Statistics (ONS) reported that public sector net borrowing rose by £1.8 billion to £24.5 billion for September.Independent Business · 21 Oct, 07:34
• Government borrowing rises above forecasts to £24.5bn ahead of BudgetThe Office for National Statistics (ONS) reported that public sector net borrowing rose by £1.8 billion to £24.5 billion for September.Evening Standard · 21 Oct, 07:34
• UK debt pile exceeds £3 trillion one week before Healey’s BudgetThe size of the UK public debt skimmed £3 trillion in September in official data released one week before John Healey’s Budget. The major milestone reflects the difficulties facing the Chancellor ahead of his maiden fiscal statement. Public sector debt rapidly climbed over the pas six years, exceeding £2 trillion in June 2020. As a share [...]City AM · 21 Oct, 07:16

In this story: John Healey · Office for National Statistics · Office for Budget Responsibility · UK

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