Public sector finances UK - May 2025 - Highest Borrowing Since 1993

23rd June 2025

Borrowing - the difference between total public sector spending and income - was £17.7 billion in May 2025; this was £0.7 billion more than in May 2024 and the second-highest May borrowing since monthly records began in 1993, after that of May 2020.

Borrowing in the financial year to May 2025 was £37.7 billion; this was £1.6 billion more than in the same two-month period of 2024 and the third-highest April to May borrowing since monthly records began, after those of 2020 and 2021.

The current budget deficit - borrowing to fund day-to-day public sector activities - was £12.8 billion in May 2025; this was £1.7 billion less than in May 2024 and the fourth-highest May current budget deficit since monthly records began in 1997.

The current budget deficit in the financial year to May 2025 was £27.4 billion; this was £1.3 billion less than in the same two-month period of 2024 and the third-highest April to May current budget deficit since monthly records began.

Public sector net debt excluding public sector banks was provisionally estimated at 96.4% of gross domestic product (GDP) at the end of May 2025; this was 0.5 percentage points more than at the end of May 2024 and remains at levels last seen in the early 1960s.

Public sector net financial liabilities excluding public sector banks were provisionally estimated at 83.9% of GDP at the end of May 2025; this was 2.5 percentage points more than at the end of May 2024, but 12.5 percentage points less than for public sector net debt.

Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £24.1 billion in May 2025; this was £0.4 billion less than in May 2024.

Borrowing in May 2025
Initial estimates show that the public sector spent more than it received in taxes and other income in May 2025, requiring it to borrow £17.7 billion.

This was £0.7 billion more borrowing than in May 2024 and £0.6 billion more than the £17.1 billion forecast by the Office for Budget Responsibility in March 2025.

Borrowing in May 2025 was the second highest in any May since monthly records began in 1993, behind that of May 2020, during the coronavirus (COVID-19) pandemic period.

Read the full ONS report HERE