UK public sector net borrowing (excluding public sector banks) rose to £23.3 billion in May 2026 from £17.9 billion in the same month last year, above market expectations of £18.5 billion. This was the second-highest borrowing for any May on record, behind that of 2020, indicating a tight fiscal situation. Public sector spending increased by £9.1 billion year-on-year to £118.0 billion, driven by rising costs of debt interest payments, public service delivery, investment, and benefits. Central government debt interest costs were the highest ever recorded for the month of May. Meanwhile, public sector receipts rose by £3.7 billion to £94.8 billion, supported by higher tax receipts. However, growth in National Insurance contributions slowed compared with recent trends, as the annual boost from the April 2025 policy changes no longer contributed. Public sector net debt excluding public sector banks was equivalent to 95.1% of GDP at the end of May, up 0.4 percentage points from a year ago.

Octalas AI

Profit

Everyone's racing to cut costs. We're racing to create profit.

Start Selling through Service

Start Trial

Free for 14 days · No credit card required