The upcoming Budget comes as borrowing runs above forecast and inflation accelerates, leaving Chancellor John Healey to present fiscal plans amid rising price and financing pressures. The ONS put public-sector net borrowing at £24.5 billion in September, £1.9 billion above the OBR forecast, while central-government debt interest reached £10.9 billion, the largest September amount in records dating to 1997. EY estimated fiscal headroom at £11.3 billion, down from £23.6 billion in March, although that is the firm's own estimate rather than an updated OBR forecast. Annual CPI inflation rose to 3.5% in the 12 months to September from 3.1% in August, led by motor fuels. The economy kept expanding but more slowly, with GDP up 0.1% in August, and the IMF projects UK growth of 1.3% in 2026.
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GBP/USD
▼ Likely negativeRelevance: medium
| Market | Currencies |
|---|---|
| Close on 10/23/2026 | 1.33804 |
| Change that session | -0.15% |
Impact is scored by AI from the headline and may be wrong. It is not investment advice.
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