Highest government borrowing in September for five years

The UK government's borrowing reached its highest level in September in the past five years, according to the UK statistics body. This was mainly due to higher interest payments, which offset the increased revenue from tax and national insurance contributions. The data shows that the government borrowed £20 billion in September, which is £8.1 billion more than the same month last year. This was primarily driven by a £5.7 billion increase in interest payments on the national debt, as a result of rising inflation and interest rates. Despite the higher borrowing, the government's revenue from taxes and national insurance contributions also increased, reflecting the ongoing economic recovery and higher earnings. However, this additional revenue was not enough to offset the rising interest costs. The figures highlight the challenges the government faces in managing the public finances amidst the ongoing economic and inflationary pressures. Policymakers will likely need to carefully balance the need for fiscal discipline with supporting the economy during this uncertain period.