Public sector finances UK - April 2025

23rd May 2025

Borrowing - the difference between total public sector spending and income - was £20.2 billion in April 2025. This was £1.0 billion more than in April 2024 and the fourth-highest April borrowing since monthly records began in 1993.

Borrowing in the financial year ending (FYE) March 2025 was provisionally estimated at £148.3 billion; this is £3.7 billion lower than our initial estimate published in April 2025 and is now £11.0 billion more than the £137.3 billion forecast by the Office for Budget Responsibility (OBR).

The current budget deficit - borrowing to fund day-to-day public sector activities - in the FYE March 2025 was provisionally estimated at £70.3 billion; this is £4.3 billion lower than our initial estimate published in April 2025 and is now £9.6 billion more than the £60.7 billion forecast by the OBR.

Public sector net debt excluding public sector banks was provisionally estimated at 95.5% of gross domestic product (GDP) at the end of April 2025; this was 0.7 percentage points more than at the end of April 2024 and remains at levels last seen in the early 1960s.

Public sector net financial liabilities excluding public sector banks were provisionally estimated at 83.5% of GDP at the end of April 2025; this was 3.3 percentage points more than at the end of April 2024, but 12.0 percentage points less than for public sector net debt.

Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £15.8 billion in April 2025, £2.6 billion less than in April 2024.

Public sector net borrowing includes two broad components: the current budget and net investment.

The current budget, which is usually in deficit, can be considered as borrowing to fund day-to-day public sector activities. This is the difference between its current receipts and current expenditure, while taking account of capital consumption (depreciation).

Initial estimates show that in April 2025, the current budget was in deficit by £13.9 billion. This was £0.4 billion less than in April 2024.

Public sector net borrowing is the sum of the current budget deficit and the public sector's net (capital) investment.

Net investment was estimated at £6.2 billion in April 2025, which was £1.4 billion more than in April 2024.

Read the full ONS report HERE