UK government borrowing below forecasts but debt hits 63-year high

Underlying public-sector borrowing came in slightly lower than government forecasts last month, but still registered the third highest figure for a May on record, while debt swelled to its highest level in more than 60 years.

The difference between public sector spending and income, minus public-sector banks, was £15.0bn in May, £0.8bn higher than May 2023, though under the £15.7bn forecast by the Office for Budget Responsibility and below the £18.4bn registered in April 2024.

This was the third highest figure for a May since monthly records began in 1993, behind those of the Covid pandemic in 2020 and 2021, according to the Office for National Statistics.

Public sector net debt excluding public-sector banks was equal to 99.8% of GDP by the end May, 3.7 percentage points higher than last May’s reading and at a level last seen in 1961, the ONS said.

Total borrowing including public-sector banks was £14.1bn, also up £0.8bn on last year.