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

Rising debt interest and welfare costs push public finances deeper into red before Rachel Reeves’s budget

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UK 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.

Figures from the Office for National Statistics (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.