Government borrowing surges to 20bn in September as Reeves faces mounting pressure ahead of tax-heavy Budget

""in something of a straitjacket""

""Fiscal headroom is all but non-existent, and growth is being hampered by a high tax burden and uncertainty over further revenue-raising measures,""

""This government will never play fast and loose with the public finances. We plan to bring down borrowing and deliver the largest deficit reduction in the G7 over the next five years.""

""If Rachel Reeves had a plan - or a backbone - she would get spending under control instead of plotting yet more tax hikes.""

Government borrowing increased sharply to more than £20bn in September, up £1.6bn from August. Six-month borrowing totaled £99.8bn, the second-highest for the first half of a financial year, and the current budget deficit reached £71.8bn. Interest payments rose to £9.7bn in September, pushing public debt to 95.3% of GDP, up one percentage point year-on-year. Fiscal rules require day-to-day spending to be matched by revenue by 2030, with economists estimating required tax rises of at least £25bn–£30bn. Markets are watching fiscal policy closely amid constrained fiscal headroom, while government and opposition positions diverge on spending and taxation.

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