Key facts
- UK national debt surpassed £3 trillion.
- Government borrowing unexpectedly climbed last month.
- The Treasury ran a budget deficit of £24.5bn in September.
- Official figures show the government paid £10.9bn in debt interest in September, the highest figure for that month on record.
- Higher inflation added £4bn to debt interest costs in September.
- Total government debt is estimated to have hit £3tn for the first time.
The UK's national debt has surpassed £3 trillion for the first time, underscoring the fiscal challenges facing Chancellor John Healey ahead of his maiden budget statement. Government borrowing unexpectedly climbed to £24.5 billion in September, contrary to forecasts. Official figures show the government paid £10.9 billion in debt interest last month, the highest September figure since records began, with rising inflation pushing up payments linked to government bonds. The Office for National Statistics reported that higher inflation added £4 billion to debt interest costs in September alone. Total government debt, while falling to 94% of the economy's size from 95% a year ago, hit the £3 trillion mark. The £24.5 billion deficit was up from £17 billion in August and £1.9 billion higher than the Office for Budget Responsibility had forecast.