UK borrowing surges past forecasts as Amazon outage ends and markets react to Bank of England signals
On October 21, 2025, the UK economy faced a trio of headline developments: a sharp rise in UK borrowing, the resolution of a major Amazon Web Services outage, and cautious signals from the Bank of England that stirred market reactions.
According to the Office for National Statistics (ONS), UK public sector borrowing reached £99.8 billion between April and September 2025 — £7.2 billion above forecasts by the Office for Budget Responsibility. September alone saw borrowing of £20.2 billion, marking the highest September figure since 2020. This surge places pressure on Chancellor Rachel Reeves, whose upcoming budget will need to address rising debt and fiscal sustainability.
The borrowing spike is attributed to increased government spending and slower-than-expected tax revenue growth. Analysts warn that continued overshooting could impact the UK’s credit outlook and investor confidence. The Bank of England, meanwhile, has signaled caution amid inflationary pressures and global economic uncertainty, prompting mixed reactions across UK stock markets.
In parallel, a major Amazon Web Services (AWS) outage that disrupted cloud services across Europe was resolved earlier today. The outage affected banking systems, e-commerce platforms, and logistics operations, highlighting the UK's dependence on cloud infrastructure. AWS confirmed the issue stemmed from a regional server failure and has since restored full functionality.
Market analysts noted that the AWS disruption, combined with fiscal concerns and central bank signals, created a volatile trading environment. The FTSE 100 and FTSE 250 saw mild fluctuations, with tech and retail sectors showing resilience post-outage.
As the UK approaches its next fiscal quarter, all eyes are on Rachel Reeves’ budget, the Bank of England’s monetary stance, and the evolving role of tech infrastructure in economic stability.
