UK National Debt Surpasses £3 Trillion as September Deficit Widens Beyond Forecasts

• UK national debt now exceeds £3 trillion for the first time.
• September’s budget deficit reached £24.5 billion, surpassing forecasts.
• Debt interest payments hit £10.9 billion, the highest September figure on record.

Britain’s national debt has surpassed £3 trillion ($4 trillion) for the first time, following a larger-than-expected budget deficit in September. Public sector net borrowing reached £24.5 billion last month, exceeding forecasts by £1.9 billion according to the Office for National Statistics. This widening deficit was primarily driven by a significant increase in central government debt interest payments, which rose to £10.9 billion in September, marking the highest September figure on record and £2.0 billion above Office for Budget Responsibility projections. The surge in interest costs is partly attributed to rising inflation impacting government bonds linked to the Retail Prices Index [STORY_ID: 934632ad-be1c-452f-987c-b22cdc10c073]. These figures underscore the fiscal challenges facing Chancellor John Healey ahead of his inaugural budget next week.