UK public sector net borrowing, excluding public sector banks, reached £18.3 billion in August 2026, above the £15.5 billion market forecast and £3.5 billion above the Office for Budget Responsibility’s expectation. Borrowing from April through August totaled £77.3 billion, £8.1 billion above the OBR’s March projection, while total public debt rose to £2.985 trillion. A record August debt-interest bill of £8.8 billion and higher welfare spending added to fiscal pressure despite stronger tax receipts. The figures increase pressure on Chancellor John Healey ahead of his October 28 budget, with economists saying tax increases or spending restraint may be needed to restore the government’s fiscal headroom.