UK Borrowing Second-highest Since Monthly Records Began In 1993

21st June 2023

Public sector net borrowing (PSNB ex) in May 2023 was £20.0 billion, £10.7 billion more than in May 2022 and the second-highest May borrowing since monthly records began in 1993, with the growth in receipts being exceeded by the additional costs of the energy support schemes and increases in both benefit payments and staff costs.

PSNB ex in the financial year to May 2023 was £42.9 billion, £19.6 billion more than in the same two-month period last year and £2.1 billion higher than the £40.8 billion forecast by the Office for Budget Responsibility (OBR).

Our initial estimate of net debt expressed as a percentage of gross domestic product (GDP) for May 2023 should be treated as highly provisional and likely to be revised in future publications because it partly relies on GDP estimates based on the latest OBR forecast.

Public sector net debt (PSND ex) at the end of May 2023 was £2,567.2 billion and provisionally estimated at 100.1% of GDP.

The last time the debt-to-GDP ratio was above 100% was March 1961; during the coronavirus pandemic early provisional estimates initially indicated that the debt-to-GDP ratio reached this level, prior to being revised down when stronger GDP data replaced initial forecasts.

Excluding the Bank of England, debt was £2,298.6 billion or provisionally around 89.6% of GDP, £268.6 billion (or 10.5 percentage points of GDP) lower than the wider measure.

Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £17.0 billion in May 2023, £2.3 billion above the £14.7 billion OBR forecast.

Public sector net worth (PSNW ex) was in deficit by £617.1 billion at the end of May 2023; this compares with a £539.1 billion deficit at the end of May 2022.

Borrowing in May 2023
The public sector spent more than it received in taxes and other income, in May 2023, requiring it to borrow £20.0 billion. This was more than double of the £9.4 billion borrowed in May 2022 and the second highest May borrowing since monthly records began in 1993, behind May 2020.

The interest payable on central government debt
In May 2023, the interest payable on central government debt was £7.7 billion, £0.2 billion less than in May 2022, but £0.7 billion above the OBR's forecast of £7.0 billion.

Read the full report HERE