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Commons Briefing paper by Matthew Keep. It was first published on Monday, 23 March 2015. It was last updated on Friday, 21 August 2026.

Public finances: Economic indicators

Economic indicators are quick-read summaries of the latest data focusing on different aspects of the UK economy. The full suite of indicators can be found on the main Economic Indicators page.

Government borrowing

The government borrowed £57 billion during the first four months of 2026/27.  

This is £6 billion less than during the same period of 2025/26 but around £2 billion more than the OBR forecast in March 2026.

Two charts showing UK public sector net borrowing. The rolling 12-month total rose sharply during the financial crisis, peaked at more than £300 billion during the Covid-19 pandemic, then fell before increasing again to around £130 billion in 2026. The chart of borrowing as a share of GDP shows peaks of around 10% in 2009/10 and nearly 15% in 2020/21. Forecasts indicate borrowing gradually falling from just over 4% of GDP in 2025/26 to around 1.6% by 2030/31.Sources: ONS series J5II, J5IJ; OBR. Public finances databank

Government debt

Public sector net debt (PSND) was equivalent to 94.1% of GDP at the end of July 2026. It was 94.9% of GDP at the end of July 2025.

Public sector net financial liabilities (PSNFL) measure the government’s wider financial balance sheet. It is a measure targeted in the government’s fiscal targets. PSNFL was equivalent to 83.7% of GDP at the end of July 2026. It was 83.1% of GDP at the end of July 2025.

Two line charts comparing UK public sector net debt (PSND) and public sector net financial liabilities (PSNFL) as a share of GDP. Both measures fell to around 30% of GDP in the early 2000s, rose sharply after the financial crisis and increased again during the Covid-19 pandemic. By 2026, PSND is around 95% of GDP while PSNFL is around 84%. Forecasts show PSND remaining close to 95-96% of GDP and PSNFL around 81-83% through 2030/31.Sources: ONS series HF6X, CPOE

Table showing UK public sector net borrowing (PSNB), public sector net debt (PSND) and public sector net financial liabilities (PSNFL) from 2019/20 to 2030/31, including forecasts from 2028/29 onwards. Borrowing peaks at £311 billion (14.7% of GDP) in 2020/21 before falling to a forecast £59 billion (1.6% of GDP) in 2030/31. Public sector net debt remains around 93-96% of GDP throughout the period, while public sector net financial liabilities remain around 79-83% of GDP.Sources: ONS series J5II, J5IJ, HF6X, CPOE; OBR. Public finances databank

Definitions and notes

The ONS’s figures for 2025/26 and 2026/27 are provisional: they’re not final figures and may be revised as provisional data are replaced with final audited data.

Net borrowing – often described as the deficit – is the difference between what the government spends and what it receives in taxes over a particular time period.

Net debt is the total amount that the public sector owes – it is largely the stock of past borrowing.

Net financial liabilities is a wider measure of the government’s balance sheet including more financial liabilities and assets 

All figures exclude public sector banks.

Next updates

This page is updated when new data is published. The next source updates will be:

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Secondary information

Type
Research briefing
Reference
SN02812 
Category
Economic indicators
Subjects
Borrowing Economic situation Public expenditure Public sector debt
Contains statistics
Yes
Published by
Economic Policy and Statistics Section
House of Commons Library
Link
View this Research briefing on researchbriefings.parliament.uk