Public sector borrowing came in £1.9 billion above the official forecast in September 2026, with total government debt exceeding £3 trillion for the first time.
Government borrowing reached £24.5 billion in September 2026 — the second-highest September total on record, behind September 2020, before adjusting for inflation — according to the Office for National Statistics. That was £1.8 billion, or 7.7 per cent, higher than in September 2025, and £1.9 billion above what the Office for Budget Responsibility had forecast.
Public sector net debt passed £3 trillion on a provisional basis by the end of the month. But debt as a proportion of the economy was lower than a year earlier — a distinction the ONS figures make clear matters when reading the raw cash total.
Higher spending, including increased debt-interest costs, outpaced growth in government income, with inflation contributing to the gap, the ONS said. The current budget deficit — which covers day-to-day spending rather than investment — stood at £15.8 billion for September alone.
Across the financial year to September 2026, the current budget deficit reached £64.0 billion. That’s £5.7 billion lower than the same period in 2025, yet £2.4 billion above the OBR’s forecast. Borrowing over the same April-to-September period was equivalent to 3.1 per cent of gross domestic product, ranking it the 10th-highest such total since monthly records began in 1993.
So the picture is mixed. The year-on-year current budget position has improved, but both the monthly and cumulative figures are running ahead of official projections. The ONS and HM Treasury publish these public sector finances figures monthly; the September 2026 bulletin was released on 21 October 2026.
Source: ONS: Public sector finances, UK: September 2026 and @ONS