PUBLIC borrowing was at near-record levels of £17.4 billion in October as experts warned “this trajectory is unsustainable without tax rises”.
Borrowing – the difference between total public sector spending and income – was £17.4 billion in October 2025, Office for National Statistics data released today shows.
This was £1.8 billion (or 9.6%) less than October 2024 but the third-highest October borrowing since monthly records began in 1993, after those of 2024 and 2020.
Borrowing in the financial year to October 2025 was £116.8 billion. This was £9 billion (or 8.4%) more than in the same seven-month period of 2024 and the second-highest April to October borrowing on record, after that of 2020.
These worrying figures come just a week before Chancellor Rachel Reeves’ crucial Autumn Budget – in which she will be attempting to bring the country’s finances under control.
Economy not growing fast enough
Philly Ponniah, Chartered Wealth Manager at Philly Financial, said the debt burden is tightening.
She added: “We’re seeing some of the highest October borrowing on record, and one of the few times it was higher was during the exceptional Covid period. Month by month the picture looks slightly softer, yet overall borrowing keeps rising because the economy simply isn’t growing fast enough to pull it down.
“If growth stays weak, the debt burden will tighten. The real test now is whether the government can set out a clear plan that actually lifts growth, because without that the country is just treading water while the costs keep building.”
Tony Redondo, Founder at Newquay-based Cosmos Currency Exchange, said the Budget next week will need to address debt.
He continued: “This trajectory is unsustainable without significant spending cuts, tax rises, or stronger economic growth. Rising interest costs create a vicious cycle where more borrowing means higher debt servicing costs, compounding the problem. Rachel Reeves’ upcoming Budget must maintain credibility with bond markets – the Truss mini-budget demonstrated the consequences of losing investor confidence.
“Without course correction, the UK risks either a funding crisis or being forced into far more painful adjustments later. The government faces difficult choices: either act now through controlled fiscal consolidation, or risk market-imposed discipline that would be more severe and damaging to the economy.”
Step in the right direction
Scott Gallacher, Director at Leicester-based Rowley Turton, said the figures did include a glimmer of hope.
He added: “While these borrowing figures are still far from encouraging, the modest improvement on last year is at least a step in the right direction.
“That will offer the Chancellor a little comfort — and may even pave the way for a slightly softer Budget than many had expected.”
Photo by Kai Gradert on Unsplash
