FX.co ★ UK Public Sector Borrowing Above Forecasts

In February 2025, the UK's public sector net borrowing, excluding public sector banks, experienced a slight increase to £10.7 billion from £10.6 billion in the previous year, surpassing the projected figure of £6.6 billion. This rise in total public sector expenditure, amounting to an additional £3.8 billion year-on-year, was primarily due to an upturn in departmental spending on goods, services, and local government operations. Simultaneously, total receipts rose by £3.7 billion, driven by increased revenues from income and corporation taxes. For the financial year up to February 2025, borrowing totaled £132.2 billion, marking an ascent of £14.7 billion from the prior year and exceeding the Office for Budget Responsibility's forecast of £111.8 billion by £20.4 billion. This marks the third highest borrowing figure for a financial year to February since the initiation of monthly records in 1993.