Business & Finance

UK borrowing rises to £18.3 billion in August, exceeding official forecasts

Higher inflation and debt interest costs add pressure on Chancellor John Healey ahead of the upcoming budget.

Updated Sep 22, 2026 · 10:14 UTC2 reports

The short version

UK public sector net borrowing reached £18.3 billion in August 2026, which was £3.5 billion higher than official OBR projections.[The Guardian]
Driven by 3.1% inflation, debt interest payments climbed to £8.8 billion, marking the highest level for August since 1997 records began.[BBC News · The Guardian]
Total borrowing for the financial year to date stands at £77.3 billion, putting pressure on the government ahead of the October budget.[BBC News · The Guardian]

UK government borrowing reached £18.3 billion in August 2026, exceeding OBR forecasts by £3.5 billion.[BBC News · The Guardian]
Debt interest payments rose to £8.8 billion in August, the highest August total since record-keeping began in 1997.[BBC News]
Cumulative borrowing for the current financial year reached £77.3 billion, which is £8.1 billion above the OBR projection.[The Guardian]
Consumer price inflation rose to a five-month high of 3.1% in the year to August.[BBC News · The Guardian]

The Office for Budget Responsibility noted that early-year borrowing estimates are provisional and subject to future revision.[The Guardian]

Outlet counts describe coverage, not independent confirmation. Reports may share a wire service or original source.