Story perspectives

UK borrows £18.3 billion in August, above forecasts

By Drooid · Sep 24, 2026, 3:58 PM UTC · How we work

Summary

Story summary

The government borrowed £18.3 billion in August 2026, exceeding expectations.
Cumulative borrowing April-August 2026 hit £77.3 billion, £8.1 billion above the OBR forecast.
Debt-service interest paid in August was £8.8 billion, the highest monthly total since 1997.
Prime Minister Andy Burnham said he will not raise income tax, VAT, corporation tax or national insurance.
Deputy finance minister Emma Reynolds reaffirmed commitment to meet fiscal rules with a buffer for uncertainty.

History

Historical Context

In 2009, the United Kingdom launched a £200 billion fiscal stimulus under Prime Minister Gordon Brown, pushing the deficit to roughly 10 % of GDP. The Treasury, led by Chancellor Alistair Darling, borrowed from Bank of England and sold bonds on London Stock Exchange, raising £150 billion in six months. Today's £77.3 billion April-August borrowing under Prime Minister Andy Burnham mirrors that crisis-era surge, as both administrations refuse to raise taxes despite soaring debt-service costs. The 2009 episode taught policymakers that unchecked borrowing can inflate interest payments, prompting future fiscal rules and buffers like the current OBR forecast safeguards.

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Story summary

The government borrowed £18.3 billion in August 2026, exceeding expectations.
Cumulative borrowing April-August 2026 hit £77.3 billion, £8.1 billion above the OBR forecast.
Debt-service interest paid in August was £8.8 billion, the highest monthly total since 1997.
Prime Minister Andy Burnham said he will not raise income tax, VAT, corporation tax or national insurance.
Deputy finance minister Emma Reynolds reaffirmed commitment to meet fiscal rules with a buffer for uncertainty.

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