As the UK approaches the November 2025 Budget, Chancellor Rachel Reeves faces an uphill battle. Public sector debt has now reached a staggering £3 trillion, with borrowing in August alone hitting £17.96 billion — the highest August figure in five years.
In the latest Citrus Bites, Richard Harris explores the Chancellor’s challenge and what it could mean for households, employers, and the wider economy.
Key points from the episode include:
- Borrowing continues to climb – UK government borrowing in the year to August 2025 reached £83.8 billion, £16 billion more than the same period in 2024.
- Inflation pressure – Employers face higher costs, with many passing them on to consumers. Staples such as vegetables, eggs, milk, and beef have all seen price hikes.
- International comparison – While the US and EU are managing to ease rates while keeping inflation in check, the UK is emerging as an outlier.
- Unemployment trends – Rising gradually to around 4.7 million, unemployment is adding pressure on both households and government finances.
Watch the full episode now
With just weeks to go before the Budget, the Chancellor must balance rising debt, stubborn inflation, and a fragile labour market. The decisions made in November will be crucial for the UK’s economic outlook.
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