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GB: Public Sector Finances
| Actual | Previous | Revised | |
| Public Sector Net Borrowing | £11.7B | £17.4B | £21.2B |
| Ex-Public Sector Banks | £11.7B | £17.4B | £21.2B |
Highlights
The November 2025 public finance figures present a mixed fiscal narrative: short-term improvement set against persistent structural pressures. Monthly borrowing fell to £11.7 billion, the lowest November outturn since 2021, reflecting some easing in near-term financing needs. The central government's cash requirement also declined, suggesting reduced immediate reliance on financial markets.
This monthly improvement stands in sharp contrast to the broader fiscal position. Cumulative borrowing for the financial year to November reached £132.3 billion, exceeding last year's level and ranking as the second-highest April-to-November total on record. The current budget deficit remains elevated, indicating that day-to-day public spending continues to outstrip revenues despite higher taxes and restrained expenditure growth. As a share of GDP, borrowing has edged up, signalling limited progress in restoring fiscal balance.
Public sector net financial liabilities, which capture a broader set of assets and obligations than net debt and exclude public sector banks, were provisionally estimated at 85.1 percent of GDP at the end of November 2025. This represented an increase of 2.7 percentage points compared with the same period in November 2024.
Public sector net debt stands at 95.6 percent of GDP, a level not seen since the early 1960s, underscoring the long-lasting legacy of successive economic shocks. Although broader net financial liabilities are lower than net debt, their annual increase reinforces concerns about fiscal sustainability. Overall, the data suggest temporary relief in monthly flows, but enduring challenges in the UK's public finances.
Definition
The public sector net borrowing requirement (PSNB) is the difference between the sector's receipts and expenditure and so provides a simple measure of government fiscal policy. In response to the global economic crisis in 2008/09 the UK government introduced a number of measures designed to show the underlying state of public sector finances by omitting temporary distortions caused by financial interventions. It bases its fiscal policy on these measures. To this end, the underlying gauge of government borrowing watched most closely by financial markets is the PSNB-X which takes overall net borrowing (PSNB) but excludes public sector banks.
Description
Changes in public sector finances can be used to determine the thrust of the government's fiscal policy. Generally speaking when the government has a rising deficit (or falling surplus) it is loosening its fiscal stance with a view to boosting economic activity. When its deficit is falling (or surplus rising), fiscal policy is being tightened in order to slow economic growth. However, sometimes changes in government financial positions can be due to factors outside of the government's control and do not signal an explicit shift in policy. This means that great care is needed in interpreting the data.