Treasury warns of difficult decisions in budget after September borrowing rise

ONS data shows higher debt interest payments and pay awards for public sector workers pushed figure to 16.6bn

The UK Treasury has said it will need to take difficult decisions in next week's budget after higher debt interest payments and pay awards for public sector workers pushed government borrowing to 16.6bn last month - the third highest September figure on record.

In the last update on the state of the public finances before Rachel Reeves announces her tax and spending plans next week, the Office for National Statistics (ONS) said the UK's budget deficit was 2.1bn higher last month than in the same month a year earlier.