The UK borrowed £24.52 billion in September 2026, more than experts had forecast. Public debt also passed £3 trillion for the first time. The figures came out on 21 October, one week before the Autumn Budget. They put fresh focus on the gap between what the state earns and what it spends.
How Much Did the UK Government Borrow in September 2026?
The Office for National Statistics (ONS) said the UK borrowed £1.8 billion more than in September 2025. This was the second-highest September total on record, after 2020.
A Reuters poll of experts had put the likely sum at £23.85 billion. The Office for Budget Responsibility (OBR) had forecast £22.6 billion. The result was £1.9 billion above that official forecast.
Why Has UK Public Debt Passed £3 Trillion?
The ONS put public sector net debt at £3.005 trillion at the end of September. This is the total built up over time, not the amount borrowed in one month. The ONS said the debt figure is still a first estimate and may change.
Debt stood at 94.0% of UK GDP, a measure of the size of the economy. That share was 0.7 percentage points less than a year ago. So, the cash value hit a new high, but debt fell a little when set against the size of the economy.
What Caused Government Borrowing to Rise?
The main issue was that spending rose faster than income. In September, central government took in £90.1 billion in current receipts. It spent £98.6 billion on day-to-day costs. Total spending, which also covers other costs, was £111.3 billion.
Interest on state debt was a key part of the rise. It reached £10.9 billion, up £1.6 billion, or 16.6%, from a year ago.
UK inflation also rose to 3.5% in September, from 3.1% in August. Some state bonds are tied to a price index called RPI. That link added £4.0 billion to the debt interest total. Not all of it was paid in cash that month.
Is UK Borrowing Above Forecast for 2026/27?
Yes. From April to September, the UK borrowed £97.8 billion. This was £4.4 billion less than in the same six months last year. Yet it was £6.0 billion more than the OBR had forecast at £91.8 billion.
Both facts matter. The deficit is smaller than last year, but the state has not cut it as fast as planned.
What Does This Mean for the Autumn Budget?
Chancellor John Healey is due to present the Budget on 28 October 2026. The new data may add to the focus on tax, public spending, and the cost of debt.
Reports have raised the chance of higher taxes on banks. But no such change is confirmed by this borrowing report.
How Can Lanop Help UK Businesses and Taxpayers Prepare for Budget Changes?
These figures do not, on their own, change anyone’s tax bill. But firms, sole traders and other taxpayers should check the Budget when it is released. It may affect their plans. If they miss a rule change later, they may face costs they did not plan for.
For now, review cash flow and tax plans. Keep room for change, but do not act on rumours.
At Lanop Business & Tax Advisors, the focus is on clear tax advice and sound financial planning. Its advisers review each client’s needs against the rules in force. This helps businesses prepare for confirmed changes rather than make decisions based on Budget rumours.
