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.