UK public sector net borrowing (excluding public sector banks) widened to 20.2 billion GBP in September 2025 from 18.6 billion GBP in the same month last year, but slightly below market expectations of 20.5 billion GBP. This was the highest September borrowing since 2020. Total public sector spending increased by 8.9 billion GBP, driven by higher costs of providing public services, benefits, and debt interest. Notably, interest payments on central government debt were higher than in any previous September on record. Meanwhile, total receipts rose by 7.3 billion GBP, reflecting higher revenue from central government taxes and national insurance contributions. Borrowing for the financial year to September reached 99.8 billion GBP, 7.2 billion GBP (7.8%) above the OBR’s March forecast of 92.6 billion GBP. It was also the second-highest year-to-date borrowing since records began in 1993, following the pandemic period. Public sector net debt, excluding public sector banks, stood at 95.3% of GDP.