Borrowing from the Public Works Loan Board totalled £1.6bn during September.
The amount brings the total lent to local authorities through the PWLB to £9.6bn for the calendar year to date.
With three months left of the year, that is higher than the £7.5bn lent during the whole of 2018.
Last month, councils took £2.0bn, the highest level of PWLB borrowing since