UK Borrowing Overshoots OBR Forecast by £8.1bn, Deepening Pressure on Healey's Budget

ONS figures published 22 September 2026 showed UK public sector net borrowing reached £77.3 billion in the first five months of the 2026/27 fiscal year (April–August), £8.1 billion above the £69.2 billion the Office for Budget Responsibility forecast in March; August alone saw borrowing of £18.3 billion against an OBR forecast of £14.8 billion. The overshoot deepens pressure on Chancellor John Healey ahead of his first Budget on 28 October, with rising borrowing costs linked to the Iran war reported to have consumed roughly half of the £23.6 billion fiscal headroom he had going into the year. Burnham acknowledged the coming Budget would be 'challenging,' and analysts said the deteriorating figures could force further tax rises to reassure bond markets.