UK Public Sector Borrowing Exceeds Forecasts

2026-09-22 06:16 By Kyrie Dichosa 1 min. read

UK public sector net borrowing (excluding public sector banks) was £18.3 billion in August 2026, higher than the £15.4 billion recorded in the same month last year and market expectations of £15.7 billion.

This marked the second-highest August on record (not adjusted for inflation), behind 2020, and was £3.5 billion above the OBR forecast.

Total public sector spending rose by £6.7 billion year-on-year to £117.2 billion, with central government spending increasing £4.9 billion to £103.1 billion, driven by higher spending on goods and services and net social benefits.

Meanwhile, total receipts rose by £3.7 billion to £99.0 billion, with central government receipts rising £3.3 billion to £89.8 billion, led by higher income-related taxes.

Borrowing in the financial year to August stood at £77.3 billion, £2.2 billion, or 2.7%, below a year earlier but £8.1 billion above the OBR forecast.

Public sector net debt was 93.8% of GDP at end-August, remaining at levels last seen in the early 1960s.



News Stream
UK Public Sector Borrowing Exceeds Forecasts
UK public sector net borrowing (excluding public sector banks) was £18.3 billion in August 2026, higher than the £15.4 billion recorded in the same month last year and market expectations of £15.7 billion. This marked the second-highest August on record (not adjusted for inflation), behind 2020, and was £3.5 billion above the OBR forecast. Total public sector spending rose by £6.7 billion year-on-year to £117.2 billion, with central government spending increasing £4.9 billion to £103.1 billion, driven by higher spending on goods and services and net social benefits. Meanwhile, total receipts rose by £3.7 billion to £99.0 billion, with central government receipts rising £3.3 billion to £89.8 billion, led by higher income-related taxes. Borrowing in the financial year to August stood at £77.3 billion, £2.2 billion, or 2.7%, below a year earlier but £8.1 billion above the OBR forecast. Public sector net debt was 93.8% of GDP at end-August, remaining at levels last seen in the early 1960s.
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