United Kingdom Public Sector Net Borrowing Ex BanksMay 2023 Data

Public sector net borrowing excluding banks in the United Kingdom was £25.6 billion in April 2023, up from £13.7 billion in the same month last year and above market expectations of £18.7 billion. It was also the second-highest April borrowing since monthly records began in 1993, as total spending increased by 14.1% to £103.0 billion due to the additional costs of the energy support schemes, the highest debt interest payment on record for the month of April and increases in benefit payments, due in part to inflation linked benefits uprating. Total receipts, on the other hand, were little-changed at £77.5 billion, with combined tax receipts and compulsory social contributions broadly flat when compared to April 2022. The ONS revised down its estimate for the budget deficit in the 2022/23 financial year that ended in March to £137.1 billion, from £139.2 billion previously.

Public sector net borrowing excluding public sector banks in the UK was in deficit by £21.53 billion in March of 2023, £16.3 billion more than in March 2022, and the second-highest March borrowing since records began in 1993. Receipts increased 2.3% to £88.8 billion and spending surged 19.9% to £110.3 billion, with the cost of the energy support schemes provided to households and businesses at around £8.0 billion. Considering the financial year ending March 2023, borrowing was £139.2 billion (or 5.5% of the GDP), £18.1 billion more than a year earlier and the fourth-highest borrowing since records began in 1946. However, it is £13.2 billion below official forecasts last fiscal year and less than the £152.4 billion forecast by the Office for Budget Responsibility. A steady rise in receipts was not enough to offset the £34.0 billion increase in interest payable on the government’s debt and the initially estimated £41.2 billion cost of the energy support schemes and other one-off costs.

Public sector net borrowing excluding public sector banks in the UK was in deficit by £16.7 billion in February of 2023, £9.7 billion above February 2022, and the highest February borrowing since monthly records began in 1993, largely because of substantial spending on energy support schemes. Total expenditure grew by 14.7% to £90.1 billion, with spending on energy support schemes totaling around £9.3 billion, similar to previous months. Central government debt interest payable was £6.9 billion, £1.3 billion less than in February 2022, largely because of the effect of price changes on index-linked gilts. Meanwhile, the current receipts were £77.8 billion, an increase of 6.8% compared with February 2022. "Borrowing is still high because we're determined to support households and businesses with rising prices and are spending about 1,500 pounds per household to pay just under half of people's energy bills this winter," finance minister Jeremy Hunt said.