UK government borrowing rises to £24.5bn as John Healey prepares for budget

AI desk brief

UK public borrowing came in at £24.5bn in September, above forecasts, as debt interest hit a record £10.9bn for the month and total government debt was estimated to have topped £3tn for the first time. The ONS said RPI-linked gilt costs rose with recent inflation gains, including a £4bn hit from higher energy costs tied to the Iran war, adding to budget pressure ahead of next week’s fiscal statement.

For metals, the key channel is a firmer inflation impulse and potential stress on UK fiscal credibility, which can keep real-yield and rates volatility elevated. The report points to persistent inflation-linked debt costs rather than a clean disinflation narrative, a mildly supportive backdrop for gold on the margin.