UK Public Sector Borrowing

Data Government

Source: ONS
Source Link: https://www.ons.gov.uk/
Frequency: Monthly
Next Release(s): October 21st, 2025 2:00 AM

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UK public sector net borrowing was £18.0 billion in August 2025, up +£3.5 billion YoY and the highest August in five years, reflecting stronger current spending and debt interest.
- FY-to-date (Apr–Aug) borrowing reached £83.8 billion, +£16.2 billion YoY and £11.4 billion above the OBR’s March profile; August alone exceeded the £12.5 billion forecast by £5.5 billion.
- The current budget deficit was £13.6 billion in August (+£3.7 billion YoY), with net investment at £4.3 billion (-£0.2 billion YoY).
- Debt metrics edged higher: public sector net debt (ex-banks) was 96.4% of GDP (+0.5 ppts YoY); public sector net financial liabilities were 84.5% of GDP (+2.5 ppts YoY).
- By subsector, central government borrowed £13.1 billion (+£3.9 billion YoY) and local government £4.2 billion (+£0.6 billion YoY); the Bank of England contribution fell to £1.0 billion (-£0.8 billion YoY).
- Central government receipts were £84.3 billion (+£4.3 billion YoY): taxes +£1.6 billion (Income Tax +£1.0 billion; VAT +£0.2 billion; Corporation Tax +£0.1 billion) and compulsory social contributions +£2.6 billion after April NICs changes.
- Self-assessed Income Tax total for Jul–Aug was £16.8 billion, +£2.5 billion YoY; August alone was £1.3 billion (-£0.2 billion YoY).
- Central government current expenditure rose to £89.1 billion (+£7.8 billion YoY), driven by departmental spending +£3.7 billion, debt interest £8.4 billion (+£1.9 billion, including £2.6 billion RPI “capital uplift”), and social benefits +£1.1 billion.
- Central government net investment in August was £4.7 billion (roughly unchanged YoY); FY-to-date net investment is £36.1 billion (-£13.1 billion YoY), partly reflecting lower transfers to the BoE APF.
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UK public sector net borrowing stood at £1.1 billion (vs £2.6 billion expected) in July 2025, down -£2.3 billion YoY, marking the lowest July figure in three years.
- Self-assessed Income Tax receipts rose to £15.5 billion (+£2.7 billion YoY), though timing effects mean July–August combined figures provide a clearer comparison.
- FY-to-date borrowing (Apr–Jul 2025) reached £60.0 billion (+£6.7 billion YoY), the third-highest on record for this period after 2020 and 2021.
- The current budget was in a £3.3 billion surplus in July, but the FY-to-date deficit widened to £42.8 billion (+£5.4 billion YoY).
- Public sector net debt was 96.1% of GDP at end-July (+0.5 ppts YoY), while net financial liabilities were 83.9% of GDP (+2.3 ppts YoY).
- Central government receipts rose £8.8 billion YoY to £100.1 billion, led by Income Tax (+£4.5 billion), VAT (+£0.9 billion), and National Insurance contributions (+£2.6 billion).
- Expenditure increased £5.3 billion YoY to £92.1 billion, driven by departmental spending (+£2.9 billion), higher social benefits (+£1.6 billion), and debt interest (+£0.2 billion).
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UK public sector net borrowing rose to £20.7 billion (vs £15.6 billion) in June 2025, up £6.6 billion YoY and £3.5 billion above the OBR’s forecast, marking the second-highest June figure since records began in 1993.
- Debt interest payments jumped to £16.4 billion (+£8.4 billion YoY), the second-highest June interest bill since 1997, driven by RPI-linked gilt payments.
- Central government receipts rose £5.7 billion YoY to £86.8 billion, led by increases in Income Tax (+£1.0 billion), VAT (+£0.7 billion), and Corporation Tax (+£0.5 billion).
- Compulsory social contributions rose £3.1 billion YoY to £17.4 billion after April National Insurance rate changes.
- Current expenditure rose £12.4 billion YoY to £97.1 billion, with higher departmental costs (+£2.0 billion) and social benefit payments (+£1.5 billion).
- FY-to-date borrowing (Apr–Jun 2025) totaled £57.8 billion (+£7.5 billion YoY), the third-highest on record; net debt stood at 96.3% of GDP (+0.5 ppts YoY).
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UK public sector net borrowing rose to £17.7 billion in May 2025 (vs £17.1 billion OBR forecast), up £0.7 billion YoY and the second-highest May figure since 1993.
- The current budget deficit fell by -£1.7 billion YoY to £12.8 billion, while net investment rose £2.3 billion to £4.9 billion.
- Central government receipts rose £5.3 billion YoY to £82.5 billion, led by a £3.5 billion increase in tax revenues and a £1.8 billion gain in social contributions.
- Expenditures increased £4.1 billion YoY to £89.2 billion, driven by departmental costs and inflation-linked benefit payments; debt interest fell by -£0.7 billion to £7.6 billion.
- Public sector net debt reached 96.4% of GDP, up 0.5 ppts YoY.
- FY to May 2025 borrowing totaled £37.7 billion (third-highest on record), with a £27.4 billion current deficit and £10.3 billion in net investment.
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UK public sector net borrowing was £20.2 billion (vs £17.9 billion expected) in April 2025, up £1.0 billion YoY and the fourth-highest April borrowing figure since records began in 1993.
- The current budget deficit for April was £13.9 billion, down -£0.4 billion YoY, while net investment rose £1.4 billion to £6.2 billion.
- Central government borrowed £26.9 billion in April, while the BoE posted a £2.6 billion surplus; total public sector net debt reached 95.5% of GDP, up 0.7 ppts YoY.
- Central government current receipts rose £5.1 billion YoY to £82.9 billion, led by a £3.6 billion increase in tax revenues and a £1.7 billion gain in social contributions.
- Expenditures increased £4.2 billion YoY to £93.9 billion, driven by departmental costs and benefit payments; debt interest fell by -£0.5 billion to £9.0 billion.
- For the FYE March 2025, borrowing totaled £148.3 billion, up £17.2 billion YoY and £11.0 billion above OBR forecasts, with a current budget deficit of £70.3 billion and net investment of £78.0 billion.
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UK public sector net borrowing was £16.4 billion in March, up £2.8 billion YoY and the third-highest March figure since records began in 1993..
- Current receipts were £93.5 billion in March 2025, £2.5 billion more than in March 2024.
- Current expenditure was provisionally estimated as £88.9 billion in March 2025, £6.2 billion more than in March 2024.
- The central government net cash requirement in March was £21.1 billion, down -£7.4 billion YoY.
- Full-year borrowing for FYE March 2025 was £151.9 billion, up £20.7 billion YoY and £14.6 billion above OBR forecasts.
- The current budget deficit was £74.6 billion (2.6% of GDP), £12.6 billion higher YoY and £13.9 billion over forecast. The deficit was the 12th highest since FYE 2009.
- Full year receipts were £1,031.2 billion in the FYE 2025, £33.6 billion more than FYE 2024.
- Full year spending was £1,031.2 billion in the FYE 2025, £48.5 billion more than FYE 2024.
- Public sector net debt (ex. banks) rose to 95.8% of GDP, the highest level since the early 1960s.
- Public sector net financial liabilities reached 83.5% of GDP, up 2.6 ppts YoY.
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Total UK public sector net borrowing was £10.7 billion in February, above expectations of just £6.6 billion of net borrowing.
- Total spending was £3.8 billion above a year ago at £107.6 billion.
- Total receipts were £3.7 billion above a year ago at £96.9 billion.
- Public sector net debt excluding public sector banks was 95.5% of GDP at the end of February 2025; this was 0.1 ppts more than at the end of February 2024 and remains at levels last seen in the early 1960s.
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UK public sector accounts reflected a £15.4 billion surplus in January, below expectations of a £20.0 billion surplus.
- This was a £0.8 billion larger surplus than last year, and the highest January surplus since monthly records began in 1993.
- Total public sector spending was £111.1 billion, up £7.3 billion from a year ago.
- Total public sector receipts were £126.6 billion, up £8.1 billion from a year ago.
- Central government tax receipts increased by £7.7 billion to £97.0 billion; this included increases of £6.9 billion in Income Tax and £0.4 billion in Corporation Tax.
UK public sector net borrowing was £20.2 billion (vs £17.9 billion expected) in April 2025, up £1.0 billion YoY and the fourth-highest April borrowing figure since records began in 1993.
- The current budget deficit for April was £13.9 billion, down -£0.4 billion YoY, while net investment rose £1.4 billion to £6.2 billion.
- Central government borrowed £26.9 billion in April, while the BoE posted a £2.6 billion surplus; total public sector net debt reached 95.5% of GDP, up 0.7 ppts YoY.
- Central government current receipts rose £5.1 billion YoY to £82.9 billion, led by a £3.6 billion increase in tax revenues and a £1.7 billion gain in social contributions.
- Expenditures increased £4.2 billion YoY to £93.9 billion, driven by departmental costs and benefit payments; debt interest fell by -£0.5 billion to £9.0 billion.
- For the FYE March 2025, borrowing totaled £148.3 billion, up £17.2 billion YoY and £11.0 billion above OBR forecasts, with a current budget deficit of £70.3 billion and net investment of £78.0 billion.
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Total UK public sector borrowing (ex-banks) was £17.8 billion in December, up from £11.8 billion in November and above the consensus expectation of £14.1 billion in borrowing. This was £10.1 billion more than in December 2023, the highest borrowing in a month since April 2024, and the highest December borrowing for four years.

The current budget deficit of £10.0 billion is the highest December budget deficit in two years. Interest payable on government debt continues to be an issue for UK public finances. That segment of spending was £8.3 billion in December, £0.5 billion more than the forecast for the month by the Office for Budget Responsibility.

This was the 2nd-highest FY to December borrowing on record, behind only the same period in 2020 (during COVID). Borrowing in the FY to December 2024 was £4.1 billion more than the £125.9 billion forecast by the OBR. UK government spending is £880.2 billion in the FY to December, £32.7 billion more than in the same nine-month period in 2023.

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