UK public-sector borrowing was estimated at £18.3 billion in August 2026, £2.9 billion more than a year earlier and £3.5 billion above the Office for Budget Responsibility’s forecast. The figure measures the gap between public-sector spending and income in the month, excluding public-sector banks.
Why did borrowing rise?
The Office for National Statistics reported that central-government current spending grew faster than receipts compared with August 2025. Borrowing is not the same as total spending: it is the amount required after receipts such as taxes are taken into account.
What is the year-to-date position?
Borrowing from April to August was provisionally estimated at £77.3 billion. That was £2.2 billion lower than in the same five months a year earlier, but £8.1 billion higher than the OBR’s March forecast profile. Monthly volatility means neither comparison alone gives a complete picture of the fiscal year.
What happened to public debt?
Public-sector net debt excluding public-sector banks was provisionally estimated at 93.8% of gross domestic product at the end of August. That ratio was 1.3 percentage points lower than a year earlier and 0.8 points below the OBR forecast. Debt and borrowing answer different questions: debt is an accumulated stock, while borrowing is a flow over a period.
Why do these figures get revised?
Public-finance statistics combine administrative and survey data that arrive at different times. Tax receipts, expenditure and GDP estimates can all be updated, changing both cash totals and debt-to-GDP ratios. The latest month is therefore best treated as a provisional snapshot, not a final account.
What should readers watch next?
Future releases will show whether the gap from the OBR profile persists and will incorporate revisions. Interest costs, tax receipts and departmental spending remain important drivers. These statistics describe the public finances; they are not a prediction about taxes, interest rates or investments.
Primary sources: the ONS August 2026 bulletin and the ONS public-sector finance topic page.
Reporting basis: official data released on 22 September 2026. Illustrative image: photo by Arisa Chattasa on Unsplash.