The UK’s national debt has exceeded £3 trillion for the first time in history. At the same time, annual inflation rose to 3.5% in September, while government borrowing totalled £24.5 billion.
The Guardian reports, citing data from the UK Office for National Statistics (ONS).
According to figures published on 21 October, at the end of September the country’s national debt reached £3.005 trillion. That is £91.7 billion more than in the same period last year.
At the same time, the ratio of national debt to GDP fell to 94%, from about 94.7% a year earlier. Even so, the figure remains at a level last seen in the early 1960s.
Annual inflation in the UK accelerated to 3.5% in September, up from 3.1% in August. It is the highest reading in almost a year and above analysts’ forecast of 3.4%.
One of the main reasons was higher motor fuel prices amid rising global energy costs.
Rising inflation has also affected the public finances, as some UK bonds are linked to the retail prices index. As a result, debt-servicing costs have increased.
In September, the government spent £10.9 billion on interest payments on the debt. This is the highest September figure on record and £1.6 billion more than in the same month last year.
According to the ONS, UK government borrowing in September totalled £24.5 billion. That is £1.8 billion more than in September 2025 and £1.9 billion above the forecast from the Office for Budget Responsibility (OBR).
Since the start of the financial year, which begins in April in the UK, total government borrowing has reached £97.8 billion. That is £4.4 billion less than in the same period last year, but £6 billion above the projected level.
As The Guardian notes, the new economic figures are increasing pressure on the UK government ahead of the presentation of the state budget next week.
High debt-servicing costs could limit the government’s fiscal room for manoeuvre and make it harder to comply with budget rules.