Official figures show UK public sector net debt rose above £3 trillion for the first time, after September borrowing reached £24.5 billion, higher than expected. Inflation rose to 3.5% in September, an 11-month high partly driven by higher fuel costs linked to the Middle East conflict, and analysts expect the Bank of England to raise interest rates next month. Central government debt interest costs hit £10.9 billion in September, the largest September figure on record. Debt as a share of GDP fell 0.7 percentage points to 94%. Ahead of next week's Budget, Chancellor John Healey ruled out raising capital gains tax, though speculation suggests banks could be targeted, and frozen tax thresholds until 2031 will pull more people into higher tax bands.
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GBP/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/20/2026 | 1.33800 |
| Change that session | +0.57% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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