UK Government Borrowing in the financial year to January 2025

21st February 2025

Monthly receipts and expenditure figures can be volatile, so the year-to-date position provides a better indicator of progress against previous years and the forecast.

The public sector spent more than it received in taxes and other income in the financial year (FY) to January 2025. Initial estimates show it was required to borrow £118.2 billion, £11.6 billion more than was borrowed in the FY to January 2024.

This was the fourth-highest FY to January borrowing since monthly records began in 1993, behind those of the equivalent 10-month period of the FY to January 2021 during the coronavirus (COVID-19) pandemic, and in the FY to January 2010 and the FY to January 2011 following the global financial downturn.

Borrowing in the FY to January 2025 was £12.8 billion more than the £105.4 billion forecast by the Office for Budget Responsibility in October 2024. Of this, central government and local government borrowing were, respectively, £8.1 billion and £4.2 billion above OBR forecast amounts.

Within public sector borrowing in the FY to January 2025, the current budget deficit was £64.8 billion, £3.8 billion more than in the same period a year ago.

Public sector net investment increased by £7.8 billion to £53.4 billion for the same 10-month period.

Full ONS report HERE