UK public sector net borrowing (excluding public sector banks) fell to £11.6 billion in December 2025 from £18.7 billion a year earlier, coming in lower than expectations of £14.0 billion. Total public sector receipts increased by £8.2 billion year-on-year, led by nearly 10% annual growth in central government tax and National Insurance contributions, the highest December level on record. Meanwhile, public sector expenditure rose by £1.1 billion compared with a year earlier, reflecting higher spending on public services, social benefits, and debt interest, which were partially offset by a reduction in payments to the rest of the world. For the financial year to December, borrowing totaled £140.4 billion, down £0.3 billion (0.2%) from the same nine-month period in 2024, though still marking the third-highest April–December borrowing on record. Public sector net debt, excluding public sector banks, stood at around 95.5% of GDP, remaining close to historically elevated levels.
