UK Inflation and Government Borrowing Hit One-Year Highs Ahead of Budget
· Business · BBC News
UK inflation accelerated to 3.5% in the year to September, driven by sharp increases in petrol, diesel, airfares, computer games, and live events. The figures, released by the Office for National Statistics, mark the highest inflation rate since October 2025. Government borrowing jumped to nearly £25bn in September, leaving borrowing for the financial year to date £6bn above official forecasts. Chancellor John Healey faces mounting pressure ahead of his first Budget, having promised to stick to Labour's commitment not to raise income tax, National Insurance, or VAT. The September inflation data also dictates that the state pension will likely rise by 3.9% next April under the triple lock, while other benefits will increase in line with the consumer price index.
Why it matters
UK consumers face rising living costs from higher fuel and energy prices, while Chancellor John Healey confronts fiscal pressure to balance public borrowing commitments ahead of the Budget.
Read the original report — BBC News
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