Economists warn that the current financial situation requires a cautious approach. Martin Beck of WPI Strategy described the data as an 'unwelcome reminder' of the challenges facing the chancellor. Greg Thwaites of the Resolution Foundation stressed the need for temporary and targeted support, citing the already strained public finances. Meanwhile, Conservative shadow chancellor Andrew Griffith criticized Labour for losing control of the economy, citing the record £3tn in government borrowing and rising inflation.
October 21, 2026
UK Borrowing Hits £24.5bn as Inflation Pressures Mount
The UK government's borrowing surged to £24.5bn in September, driven by soaring inflation and rising debt interest costs ahead of the upcoming budget.
Impact
The data signals heightened fiscal pressure on the UK government, raising concerns about its ability to manage public finances amid inflation and energy cost challenges.