UK Public Borrowing Exceeds Expectations

UK public sector net borrowing (excluding public sector banks) fell to £11.6 billion in December 2025 from £18.7 billion a year earlier, coming in lower than expectations of £14.0 billion. Total public sector receipts increased by £8.2 billion year-on-year, led by nearly 10% annual growth in central government tax and National Insurance contributions, the highest December level on record. Meanwhile, public sector expenditure rose by £1.1 billion compared with a year earlier, reflecting higher spending on public services, social benefits, and debt interest, which were partially offset by a reduction in payments to the rest of the world. For the financial year to December, borrowing totaled £140.4 billion, down £0.3 billion (0.2%) from the same nine-month period in 2024, though still marking the third-highest April–December borrowing on record. Public sector net debt, excluding public sector banks, stood at around 95.5% of GDP, remaining close to historically elevated levels.

UK public sector net borrowing (excluding public sector banks) narrowed to £11.7 billion in November 2025, down from £13.6 billion a year earlier, but above market expectations of £10 billion. Total public sector receipts increased by £5.9 billion year-on-year, supported by higher central government tax revenues and National Insurance contributions. Meanwhile, total public sector expenditure rose by £4.0 billion, reflecting increased spending on public services and social benefits, while debt interest costs declined compared with last year amid easing inflation-linked payments. For the financial year to November, borrowing reached £132.3 billion, up £10.0 billion, or 8.2%, from the same eight-month period of 2024, marking the second-highest April-to-November borrowing on record after 2020. Public sector net debt, excluding public sector banks, stood at around 95.6% of GDP, remaining close to historically elevated levels.

UK public sector net borrowing (excluding public sector banks) narrowed to £17.4 billion in October 2025 from £19.3 billion a year earlier, but above market expectations of £15.2 billion. This marked the third-highest October deficit on record. Total public sector spending rose by £4.5 billion, driven by higher costs of providing public services and benefits, partially offset by a decrease in interest payable on central government debt. Meanwhile, total receipts increased by £6.3 billion, supported by higher central government tax revenues and National Insurance contributions. For the financial year up to October, borrowing reached £116.8 billion, an increase of £9.0 billion (8.4%) compared with the same seven-month period in 2024. This represents the second-highest April-to-October borrowing on record, surpassed only by 2020. Public sector net debt excluding public sector banks was at 94.5% of GDP.