UK government borrowing hits £36bn in September

Government borrowing rose to £36.1bn in September as the country spent heavily to support jobs and the economy through the coronavirus pandemic.

The figure was £28.4bn more than in the same month last year, and the third-highest borrowing in any month since records began in 1993.

Central government bodies are estimated to have spent £77.8bn on day-to-day activities, £18.1bn more than in September 2019.

This includes £4.9bn on the furlough scheme and £1.0bn in Self Employment Income Support Scheme (SEISS) payments, the Office for National Statistics said.

Borrowing in the first six months of this financial year (April to September 2020) was £208.5 billion, £174.5 billion more than in the same period last year and the highest borrowing in any April to September period since records began. Each of the six months from April to September 2020 were also records.

While the cost of supporting the economy has risen, experts have warned that the cost of withdrawing support could be substantially higher as people are pushed out of work and onto benefits, sucking demand out of the economy.

Separate figures released on Wednesday showed that inflation was 0.7 per cent, well below the Bank of England’s 2 per cent target.