October’s public sector finance figures highlight rising UK government borrowing, which reached £17.4 billion, driven by record debt interest payments and increased public sector pay. With spending outpacing revenue, Chancellor Rachel Reeves faces challenges in maintaining fiscal stability. The government plans to increase spending significantly over the next five years, potentially necessitating tax hikes. Public debt has now hit £2.7 trillion, equating to 97.5% of the UK’s GDP.