FX.co ★ UK Public Sector Borrowing Exceeds Forecasts

UK public sector net borrowing (excluding public sector banks) rose to £18.3 billion in August 2026, up from £15.4 billion a year earlier and above market expectations of £15.7 billion. This was the second-highest August figure on record in cash terms, surpassed only by 2020, and exceeded the OBR forecast by £3.5 billion. Total public sector spending increased by £6.7 billion year-on-year to £117.2 billion. Central government spending rose £4.9 billion to £103.1 billion, driven mainly by higher expenditure on goods and services and increased net social benefits. Total receipts grew by £3.7 billion to £99.0 billion, with central government receipts up £3.3 billion to £89.8 billion, supported largely by stronger income-related tax revenues. Borrowing in the financial year to August totalled £77.3 billion, £2.2 billion (2.7%) lower than in the same period last year but £8.1 billion above the OBR forecast. Public sector net debt stood at 93.8% of GDP at the end of August, 1.3 percentage points lower than a year earlier.