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UK Borrowing Soars to £18 Billion, Tax Hikes Loom

9/20/2025

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Story summary
  • UK government borrowing hit £18 billion in August, the highest in five years, raising concerns for Chancellor Rachel Reeves before the autumn budget.
  • Year-to-date borrowing totals £83.8 billion, surpassing previous years and forecasts.
  • Experts now deem tax increases "inevitable" to mitigate the fiscal shortfall.
  • Rising interest costs and increased public spending drive the borrowing surge.
  • Public sector net debt reaches £2.91 trillion, approximately 96.4% of GDP.