Public sector finances UK June 2025 - Borrowing Increases
22nd July 2025
Borrowing - the difference between total public sector spending and income - was £20.7 billion in June 2025; this was £6.6 billion more than in June 2024 and the second-highest June borrowing since monthly records began in 1993, after that of June 2020.
The interest payable on central government debt was £16.4 billion in June 2025, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index; this was £8.4 billion more than in June 2024 and the second-highest June central government interest payable since monthly records began in 1997, after that of June 2022.
Borrowing in the financial year to June 2025 was £57.8 billion; this was £7.5 billion more than in the same three-month period of 2024 and the third-highest April to June 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 £16.3 billion in June 2025; this was £7.1 billion more than in June 2024 and the third-highest June current budget deficit since monthly records began in 1997, after those of 2020 and 2022.
The current budget deficit in the financial year to June 2025 was £44.5 billion; this was £6.5 billion more than in the same three-month period of 2024 and the third-highest April to June current budget deficit since monthly records began, after those of 2020 and 2021.
Public sector net debt excluding public sector banks was provisionally estimated at 96.3% of gross domestic product (GDP) at the end of June 2025; this was 0.5 percentage points more than at the end of June 2024 and remains at levels last seen in the early 1960s.
Public sector net financial liabilities excluding public sector banks were provisionally estimated at 83.8% of GDP at the end of June 2025; this was 2.2 percentage points more than at the end of June 2024, but 12.5 percentage points less than for public sector net debt.
Central government net cash requirement (excluding UK Asset Revolution Ltd and Network Rail) was £15.8 billion in June 2025; this was £1.3 billion more than in June 2024.
Table of contents
Main points
June 2025 indicators at a glance
Borrowing in June 2025
Borrowing in the financial year to June 2025
Borrowing in earlier financial years
The public sector balance sheet
Revisions
Data on public sector finances
Glossary
Data sources and quality
Related links
Cite this statistical bulletin
Print this Statistical bulletin
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1.Main points
Borrowing - the difference between total public sector spending and income - was £20.7 billion in June 2025; this was £6.6 billion more than in June 2024 and the second-highest June borrowing since monthly records began in 1993, after that of June 2020.
The interest payable on central government debt was £16.4 billion in June 2025, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index; this was £8.4 billion more than in June 2024 and the second-highest June central government interest payable since monthly records began in 1997, after that of June 2022.
Borrowing in the financial year to June 2025 was £57.8 billion; this was £7.5 billion more than in the same three-month period of 2024 and the third-highest April to June 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 £16.3 billion in June 2025; this was £7.1 billion more than in June 2024 and the third-highest June current budget deficit since monthly records began in 1997, after those of 2020 and 2022.
The current budget deficit in the financial year to June 2025 was £44.5 billion; this was £6.5 billion more than in the same three-month period of 2024 and the third-highest April to June current budget deficit since monthly records began, after those of 2020 and 2021.
Public sector net debt excluding public sector banks was provisionally estimated at 96.3% of gross domestic product (GDP) at the end of June 2025; this was 0.5 percentage points more than at the end of June 2024 and remains at levels last seen in the early 1960s.
Public sector net financial liabilities excluding public sector banks were provisionally estimated at 83.8% of GDP at the end of June 2025; this was 2.2 percentage points more than at the end of June 2024, but 12.5 percentage points less than for public sector net debt.
Central government net cash requirement (excluding UK Asset Revolution Ltd and Network Rail) was £15.8 billion in June 2025; this was £1.3 billion more than in June 2024.
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2.June 2025 indicators at a glance
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3.Borrowing in June 2025
Initial estimates show that the public sector spent more than it received in taxes and other income in June 2025, requiring it to borrow £20.7 billion.
This was £6.6 billion more borrowing than in June 2024 and £3.5 billion more than the £17.1 billion forecast by the Office for Budget Responsibility in March 2025.
It was the second-highest borrowing in any June since monthly records began in 1993, behind that of June 2020, during the coronavirus (COVID-19) pandemic period.
Figure 1: Borrowing in June 2025 was higher than in any June in the last four years
Public sector net borrowing excluding public sector banks, £ billion, UK, June 2021 to June 2025
Monthly public sector net borrowing (PSNB ex)June public sector net borrowing (PSNB ex)Jun 2021Dec 2021Jun 2022Dec 2022Jun 2023Dec 2023Jun 2024Dec 2024Jun 2025-20-100102030£ billion
Source: Public sector finances from the Office for National Statistics
Notes:
Dataset identifier code: -J5II.
Positive numbers indicate a deficit; negative numbers a surplus.
Download this chartFigure 1: Borrowing in June 2025 was higher than in any June in the last four years
Image .csv .xls
Public sector net borrowing is the sum of the current budget deficit and the public sector's net (capital) 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).
The current budget was in deficit by £16.3 billion in June 2025, which was £7.1 billion more than in June 2024.
Public sector net investment comprises of its acquisitions less disposals of capital assets (gross fixed capital formation), less the depreciation of capital assets, plus capital grants to the private sector, less capital grants from the private sector.
Net investment was estimated at £4.4 billion in June 2025, which was £0.5 billion less than in June 2024.
Table 1: Public sector net borrowing by subsector: June
Public sector net borrowing by subsector June 2025 compared with June 2024, £ billion
Sub-sector Dataset
identifier code June (£ billion) Change on a year ago
2025 2024 £ billion Percentage
Central Government -NMFJ 20.2 13.0 7.2 55.3
Local Government -NMOE -0.5 -0.8 0.3 33.9
Sub-total: General
Government -NNBK 19.7 12.3 7.5 60.9
Public Corporations -CPCM -0.1 -0.1 0.0 -7.6
Public Sector Funded
Pensions -CWNY -0.2 -0.1 -0.1 -70.8
Sub-total: Public
Sector ex BoE and
Banks [note 1] -CPNZ 19.4 12.0 7.4 61.4
Bank of England -JW2H 1.3 2.1 -0.8 -38.3
Sub-total: Public
Sector ex [note 2] -J5II 20.7 14.1 6.6 46.7
Public Sector Banks -IL6B 0.0 0.0 0.0 0.0
Total: Public Sector -ANNX 20.7 14.1 6.6 46.7
Memo: Central
government net cash
requirement [note 3] M98R 15.8 14.5 1.3 9.1
Source: Public sector finances from the Office for National Statistics
Notes
Public sector excluding Bank of England and the public sector-controlled banks.
Public sector excluding the public sector-controlled banks.
Excludes Network Rail Limited and UK Asset Resolution Limited.
The data in this table correspond to those published in Table PSA2 of our Public sector finances tables 1 to 10: Appendix A dataset.
Extremely large percentage changes are not included in this table.
With effect from June 2024 there are no institutions classified as public sector banks.
Download this tableTable 1: Public sector net borrowing by subsector: June
.xls .csv
A breakdown of net borrowing by subsector and a summary of central government receipts and expenditure data are presented in Tables 1 to 3 in our Public sector finances summary tables: Appendix M dataset.
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The initial outturn estimates for the early months of the current financial year contain more forecast data than other months, as profiles of tax receipts and departmental and local government spending are still provisional. The data for these months are typically prone to sizeable revisions in later months.
Central government borrowing
Central government forms the largest part of the public sector and includes government departments such as HM Revenue and Customs (HMRC), Department of Health and Social Care, Department for Work and Pensions, Department for Education, Ministry of Defence and other government agencies.
The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Of the £20.7 billion borrowed by the public sector in June 2025, central government borrowed £20.2 billion.
Central government current receipts
Central government's current receipts were £86.8 billion in June 2025, £5.7 billion more than in June 2024. Of this £5.7 billion increase in income:
central government tax receipts increased by £2.3 billion to £63.6 billion; this included increases of £1.0 billion in Income Tax, £0.7 billion in Value Added Tax (VAT), and £0.5 billion in Corporation Tax receipts
compulsory social contributions increased by £3.1 billion to £17.4 billion; on 6 April 2025 changes to the rate of National Insurance contributions paid by employers came into effect
A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.
Central government current expenditure
Central government spending data for June 2025 are provisional. There is uncertainty around these estimates until more detailed departmental information becomes available over time.
Central government's current expenditure was provisionally estimated as £97.1 billion in June 2025, £12.4 billion more than in June 2024. Of this overall £12.4 billion increase in spending:
central government debt interest payable increased by £8.4 billion to £16.4 billion, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index (RPI)
central government departmental spending on goods and services increased by £2.0 billion to £37.2 billion, as pay rises and inflation increased running costs
net social benefits paid by central government increased by £1.5 billion to £26.5 billion, largely caused by inflation-linked increases in many benefits and earnings-linked increases to state pension payments
payments to support the day-to-day running of local government decreased by £0.4 billion to £12.3 billion; these intra-government transfers are both central government spending and a local government receipt, so they have no effect on overall public sector borrowing
Interest payable on central government debt
The interest payable on central government debt was £16.4 billion in June 2025, £8.4 billion more than in June 2024, and £2.4 billion more than the £14.0 billion forecast by the Office for Budget Responsibility (OBR). This was the second-highest June interest payable since monthly records began in 1997, after that of June 2022.
Borrowing in the financial year to June 2025
The public sector spent more than it received in taxes and other income in the financial year (FY) to June 2025. Provisional estimates show it borrowed £57.8 billion over the three-month period, in line with the latest (March 2025) Office for Budget Responsibility (OBR) forecast.
Borrowing in financial year ending (FYE) June 2025 was £7.5 billion more than in the FY to June 2024 and the third highest in any June since monthly records began in 1993, after those of June 2020 and 2021, during the coronavirus (COVID-19) pandemic period.
Read the full ONS report HERE
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