U.K. Government Borrowing Rises for Second Month
Debt interest costs hit a record May high, with borrowing £5.4 billion above a year earlier and well above forecasts, the ONS said.
- On Friday, the Office for National Statistics reported public sector net borrowing reached £23.3 billion in May 2026, surpassing both economist and Office for Budget Responsibility forecasts of £18.8 billion and £17.7 billion.
- Debt interest payments jumped £4.1 billion to a record £11.7 billion for May, driven by rising Retail Prices Index inflation on index-linked bonds amid global economic pressures from the Middle East conflict.
- Government spending on public services, investment, and benefits increased in May compared to last year, outpacing higher tax receipts, while retail sales rose 0.4% between March and May.
- Borrowing for the first two months of the financial year reached £46.3 billion, nearly £9 billion higher than the same period in 2025 and £7.7 billion above OBR projections.
- Chief Secretary to the Treasury Lucy Rigby defended the government's economic plan this week, asserting the government remains committed to cutting borrowing despite global challenges and Middle East conflict pressures.
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13 Articles
UK borrowing rises to £23.3billion as debt interest reaches highest May figure on record
Government borrowing surged to £23.3billion in May, official figures showed, marking an increase of nearly a third compared with the same month last year and exceeding economists' expectations.The Office for National Statistics (ONS) reported borrowing was £5.4billion higher than in May 2025, representing an increase of 30.4 per cent.Interest payments on Government debt reached £11.7billion, the highest figure ever recorded for the month of May.…
U.K. Government Borrowing Rises for Second Month
Borrowing by the U.K. government was higher in May than a year earlier, a second straight month of increase that suggests the government is finding it difficult to deliver planned reductions in its budget deficit at a time when the conflict in the Middle East has slowed growth.
UK runs much bigger than expected budget deficit in May
Britain's government ran a budget deficit of £23.3 billion pounds ($30.7 billion) in May, the Office for National Statistics said on Friday, up 30% on a year earlier and above all economists' expectations in a Reuters poll.
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