Public sector finances, UK: April 2026

• Borrowing – the difference between total public sector spending and income – was £24.3 billion in April 2026; this was £4.9 billion (25.1%) more than in April 2025, and £3.4 billion more than the £20.9 billion forecast by the Office for Budget Responsibility (OBR).

• Borrowing in the financial year ending (FYE) March 2026 was provisionally estimated at £129.0 billion; this was £22.8 billion (15.0%) less than in the FYE March 2025, and £3.7 billion less than the £132.7 billion forecast by the OBR.

• We have reduced our initial estimate of borrowing in the FYE March 2026 by £3.0 billion since our publication on 23 April 2026 because of regular updates to our central government data.

• Borrowing in the FYE March 2026 was provisionally estimated at 4.2% of gross domestic product (GDP); this was 1.0 percentage point less than in the FYE March 2025, and the lowest value since the FYE March 2020, when it was 2.6% of GDP.

• The current budget deficit – borrowing to fund day-to-day public sector activities – was £17.4 billion in April 2026; this was £3.4 billion (24.6%) more than in April 2025, and £2.6 billion more than the £14.8 billion forecast by the OBR.

• Public sector net debt excluding public sector banks – a measure of the amount of money owed to the UK private sector and overseas less any liquid assets held – was provisionally estimated at 94.2% of GDP at the end of April 2026; this was 0.5 percentage points more than in April 2025 and remains at levels last seen in the early 1960s.

• Public sector net financial liabilities excluding public sector banks – which considers a wider range of financial assets and liabilities than net debt – were provisionally estimated at 83.6% of GDP at the end of April 2026; this was 2.0 percentage points more than in April 2025.

• Central government net cash requirement (excluding UK Asset Resolution Limited and Network Rail Limited) – the additional cash needed to be raised from the financial markets to finance activities – was £15.5 billion in April 2026, which was £0.3 billion (1.7%) less than in April 2025.

Initial estimates show that the public sector borrowed £24.3 billion in April 2026; this was £4.9 billion more than in April 2025.

Our Public sector finances borrowing by subsector: Appendix R dataset provides further detail on data presented in Table 1 and includes the option to select other time periods.

Central government borrowing

Central government forms the largest part of the public sector and includes government departments such as the Department of Health and Social Care, the Department for Work and Pensions and the Department for Education.

The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Of the £24.3 billion that the public sector borrowed in April 2026, central government borrowed £33.3 billion, with other subsectors showing a surplus.

Central government receipts

Central government's receipts were £85.5 billion in April 2026, which was £2.4 billion (2.9%) more than in April 2025. Of this £2.4 billion increase in income:

• central government tax receipts increased by £1.8 billion to £64.2 billion; this included increases of £0.9 billion in Income Tax receipts, £0.2 billion in Corporation Tax receipts, and £0.2 billion in Value Added Tax (VAT) receipts

• compulsory social contributions increased by £0.3 billion to £15.4 billion

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

The forecasts underlying current HM Revenue and Customs tax estimates reflect the expectations published in the Economic and fiscal outlook – March 2026 report from the Office for Budget Responsibility (OBR).

Central government current expenditure

Central government spending data for April are provisional. There is uncertainty around these estimates until more detailed departmental information becomes available over time.

Central government's current expenditure – spending to fund its day-to-day activities – was provisionally estimated as £101.1 billion in April 2026, which was £6.2 billion (6.5%) more than in April 2025. Of this £6.2 billion increase in spending:

• net social benefits paid by central government increased by £2.7 billion to £29.5 billion; this was largely caused by inflation-linked increases in many benefits and earnings-linked increases to State Pension payments

• central government departmental spending on goods and services increased by £1.7 billion to £38.8 billion, as inflation increased the cost of providing public services

• central government debt interest payable increased by £0.9 billion to £10.3 billion, with movements in the Retail Prices Index (RPI) adding volatility to the monthly debt interest costs

• payments to support the day-to-day running of local government increased by £0.4 billion to £17.2 billion; these intra-government transfers are both central government spending and a local government receipt, so they have no effect on overall public sector borrowing

Central government debt interest costs

Borrowing is largely financed by the issuance of central government gilts by the Debt Management Office, on which interest is paid to investors.

Central government debt interest payable in April 2026 was £10.3 billion; this was £0.9 billion more than in April 2025 and the highest in any April on record (not adjusted for inflation).

The interest payable on index-linked gilts rises and falls with the RPI, adding volatility to central government debt interest costs. This additional RPI inflation-linked component of interest is described as "capital uplift" and affects the value of the gilt principal.

Capital uplift increased the total central government interest payable by £2.9 billion in April 2026. This largely reflects the 0.4% increase in the RPI between January 2026 and February 2026.

Capital uplift is accrued throughout the life of each index-linked gilt but is paid to gilt holders as interest at redemption. Accrued capital uplift is shown as the light blue portion of each stacked bar in Figure 2.

Central government net investment

Central government net investment was £13.9 billion in April 2026, £2.5 billion more than in April 2025. This increase was largely because of an increase in central government gross capital formation and an increase in money paid by HM Treasury to the Bank of England (BoE).

There was a £1.0 billion increase in the regular quarterly payment from HM Treasury to the BoE Asset Purchase Facility (APF) Fund in April 2026, compared with a year earlier. These intra-public sector transfers have no impact on overall public sector borrowing because they are recorded as both central government spending and BoE receipts. 

Comparing our April 2026 borrowing estimates with official forecasts

The Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the UK government. These forecasts are usually produced twice a year, in spring and autumn.

The latest forecasts were published by the OBR in its Economic and fiscal outlook – March 2026 report on 3 March 2026. This section compares our provisional estimates for 2026 with the corresponding forecasts published by the OBR.

Borrowing was £3.4 billion higher than forecast in April 2026, largely because central government spending was higher than anticipated.

Borrowing in the financial year ending (FYE) March 2026 was provisionally estimated at £129.0 billion. This was £22.8 billion (15.0%) less than in the FYE March 2025, and £3.7 billion less than the £132.7 billion forecast by the Office for Budget Responsibility (OBR), published in March 2026.

We have reduced our initial estimate of borrowing in the 12 months to March 2026 (published on 23 April 2026) by £3.0 billion because of regular updates to our central government data.

Our Public sector finances borrowing by subsector: Appendix R dataset provides further detail on data presented in Table 3 and includes the option to select other time periods.

Central government net borrowing

Central government forms the largest part of the public sector, and the relationship between its receipts and expenditure is an important determinant of public sector net borrowing. Of the £129.0 billion borrowed by the public sector in the FYE March 2026, central government borrowed £122.6 billion.

Central government receipts

Central government's receipts were £1,122.8 billion in the FYE March 2026, which was £88.4 billion (8.5%) more than in the same 12-month period a year ago. Of this £88.4 billion increase in income:

• central government tax receipts increased by £56.5 billion to £847.3 billion; this included increases of £35.0 billion in Income Tax, £11.0 billion in Value Added Tax (VAT), and £5.1 billion in Corporation Tax receipts

• compulsory social contributions increased by £32.6 billion to £206.4 billion, as changes to the rate of National Insurance contributions paid by employers came into effect on 6 April 2025

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

Central government current expenditure

Central government's current expenditure – spending to fund its day-to-day activities – was provisionally estimated at £1,093.9 billion in the FYE March 2026, which was £63.9 billion (6.2%) more than in the same 12-month period a year ago. Of this £63.9 billion increase in spending:

• central government departmental spending on goods and services increased by £27.1 billion to £460.8 billion, as pay rises and inflation increased running costs

• net social benefits paid by central government increased by £19.9 billion to £326.5 billion, largely caused by inflation-linked increases in many benefits (including Universal Credit), and earnings-linked increases to State Pension payments

• interest payable on central government debt increased by £12.2 billion to £97.6 billion, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index

• payments to support the day-to-day running of local government increased by £3.6 billion to £148.7 billion; these intra-government transfers have no impact on overall public sector borrowing

Central government net investment

Central government net investment was £108.0 billion in the financial year (FY) to March 2026, which was £9.3 billion less than in the FY to March 2025.

Over this period, central government made payments totalling £16.7 billion to the Bank of England (BoE) Asset Purchase Facility Fund, which was £19.7 billion less in the FY to March 2025. These payments are recorded as both central government net investment expenditure and BoE receipts, so have no effect on overall public sector borrowing.

This reduction in spending is partially offset by increases in other capital transfers paid by central government of £5.0 billion and an increase in gross capital formation of £7.1 billion, along with other smaller changes.

Local government borrowing

Initial estimates show that local government net borrowing was £15.5 billion in the FYE March 2026; this was £0.8 billion less than in the FYE March 2025.

Local government data for the FYE March 2026 are provisional estimates for the UK. They are largely based on budget data for England, Scotland and Wales, with estimates included for Northern Ireland. Further information on the quality of our local government data is discussed in Section 11: Data sources and quality.

In our Government expenditure in the UK article, we discuss the types of government expenditure and their trends over the last 30 years, including current and capital spending by central and local government.

Public corporations' borrowing

Initial estimates show that overall, public corporations had a surplus of £2.8 billion in the FYE March 2026; this was a £0.5 billion larger surplus than in the FYE March 2025.

Borrowing figures for public corporations in the current financial year are highly provisional and are primarily based on the OBR's Economic and fiscal outlook – November 2025 report.

Estimates for the FYE March 2025 use the Economic and fiscal outlook – October 2024 report, supplemented by in-year data for train operating companies, the Housing Revenue Account, and surveyed public corporations.

Bank of England borrowing

Initial estimates show that overall, the BoE had a surplus of £3.9 billion in the FYE March 2026; this was a £10.7 billion smaller surplus than in the FYE March 2025.

This change was largely because of a reduction of £19.7 billion in central government payments to the BoE Asset Purchase Facility (APF) Fund, reducing its income. This reduction in income was partially offset by a reduction in the BoE's interest costs of £8.5 billion, reducing its expenditure across the 12-month period.

Borrowing figures for the BoE in the FYE March 2026 are highly provisional and are primarily based on monthly APF data and the latest published annual report.

Comparing our FYE March 2026 borrowing estimates with official forecasts

The Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the UK government.

The latest forecasts were published by the OBR in its Economic and fiscal outlook – March 2026 report on 3 March 2026. This section compares our provisional estimates for the financial year ending March 2026 with the corresponding forecasts published by the OBR.

In the financial year ending March 2026, borrowing was £3.7 billion below forecast, as lower-than-expected spending more than offset the shortfall in receipts.

Provisional estimates show the public sector borrowed £129.0 billion in the financial year ending (FYE) March 2026. This is the sixth-highest amount borrowed in any financial year since records began in the FYE March 1947. However, these estimates have not been adjusted for inflation.

Expressing borrowing as a ratio of gross domestic product (GDP) – the value of everything produced in the UK economy in a 12-month period – gives an estimate of its affordability and is recommended for comparison of the UK’s fiscal position over time.

Borrowing was provisionally estimated at 4.2% of GDP in the FYE March 2026. This was 1.0 percentage point less than in the FYE March 2025 and is the 37th highest borrowing ratio in any financial year since records began in the FYE March 1901. Our provisional estimate is broadly in line with the Office for Budget Responsibility forecast of 4.3% of GDP.

The public sector balance sheet describes its financial position at a point in time. It shows its liabilities and assets. There are several measures of the public sector balance sheet that we discuss in our What the UK government owns and what it owes blog.

As a part of the quantitative easing activities of the Bank of England (BoE), it purchased central government gilts from the market through the Asset Purchase Facility (APF) Fund. These gilt holdings consolidate within the public sector balance sheet, leaving only the difference between their purchase price and their redemption value. 

Subsequent movements in the market value of these consolidated gilt holdings have no effect on the public sector balance sheet.

The reserves created by the BoE and subsequently loaned to the APF to purchase these gilts remain on the public sector balance sheet as a liability in currency and deposits until the loan is repaid.

Our Public sector balance sheet tables: Appendix N dataset presents a detailed reconciliation between the balance sheet measures summarised in Table 5.

Public sector net debt

Public sector net debt is a widely quoted balance sheet measure. Expressing net debt as a ratio of gross domestic product (GDP) gives an estimate of its affordability and provides a more consistent measure for comparison of the UK's fiscal position over time.

The net debt-to-GDP ratio at the end of April 2026 was provisionally estimated at 94.2%; this was 0.5 percentage points more than in April 2025 and 0.1 percentage points less than the 94.3% forecast by the Office for Budget Responsibility (OBR) in March 2026.

Our How the ONS estimates UK debt to GDP figures blog explains why our estimates of the debt to GDP ratio are susceptible to revision.

Public sector net financial liabilities

Public sector net financial liabilities (PSNFL) has a broader scope than debt (PSND). It adds further financial assets and financial liabilities to those recorded in PSND.

PSNFL was 83.6% of GDP at the end of April 2026, which was 2.0 percentage points more than at the end of April 2025.

These extra financial assets are currently valued at more than the extra financial liabilities, meaning that PSNFL was 10.6 percentage points of GDP less than PSND at the end of April 2026.

We explain the financial assets and liabilities captured in PSNFL in our Public sector net financial liabilities (PSNFL) methodology.

Additionally, we published a blog explaining the PSNFL measure, because it has been selected by the UK government as the reference for a balance sheet fiscal rule.

The additional financial assets and liabilities included in PSNFL that fall outside of the PSND boundary are not updated monthly. Instead, they are updated quarterly, or when data become available. These data were last updated on 20 March 2026 and will next be updated on 19 June 2026.

A more detailed presentation of the public sector balance sheet is available in our Public sector net worth: Appendix O dataset, released on 20 March 2026.

The UK government has legislated for fiscal targets to constrain its management of the public finances. The Autumn Budget 2024 announced that from January 2025, these fiscal targets focus on the public sector current budget deficit and public sector net financial liabilities.

The targets are that by the end of the financial year ending (FYE) 2030, the current budget should be brought into surplus, and that public sector financial liabilities should be falling relative to the size of the economy (or gross domestic product – GDP) compared with the previous year. 

Our latest figures show that:

• the public sector current budget deficit was initially estimated as £47.3 billion in the FYE March 2026; this was £28.7 billion less than in the FYE March 2025

• public sector net financial liabilities were initially estimated at 83.2% of GDP at the end of March 2026; this was 2.1 percentage points more than at the end of March 2025

The data for the latest months of every release contain a degree of forecasts. These are then replaced by improved estimates, as further data are made available, and finally by outturn data.

Our Public sector finance revisions analysis: Appendix P dataset records monthly borrowing data, as at first and at subsequent publications, graphically illustrating any potential bias to our early estimates.

Revisions to public sector net borrowing in the financial year to March 2026

Since our Public sector finances, UK: March 2026 bulletin, we have revised public sector net borrowing (PSNB ex) in the financial year ending March 2026 down by £3.0 billion (or 2.3%) to £129.0 billion, reflecting updated central government data.

Central government receipts have been revised up by £1.3 billion following the replacement of forecasts with cash data.

Central government spending has been revised down by £1.0 billion overall, although grants to local government increased by £0.8 billion, reducing local authority borrowing over the year.

Revisions to public sector net debt at the end of March 2026

We have increased our estimate of public sector net debt at the end of March 2026 by £6.4 billion (or 0.2%) to £2,917.2 billion.

Of this increase, £6.0 billion was because of updates to our estimate of the Bank of England's (BoE) contribution to debt. Some of these data are published one month in arrears, so large revisions are not uncommon.

The remaining £0.4 billion was largely because of an increase to our previous estimate of Network Rail Limited's contribution to public sector net debt, again because some of these data are published one month in arrears.

Revisions to GDP

This month, we have updated our previous estimates of nominal gross domestic product (GDP) with those published in our GDP first quarterly estimate, UK: January to March 2026 bulletin, published on 14 May 2026.

Public sector

The UK public sector comprises of six subsectors: central government, local government, public non-financial corporations, public sector-funded pensions, the Bank of England, and public financial corporations.

Figures in this release exclude public sector banks, following the reclassification of NatWest Group to the private sector in June 2024.

Public sector net borrowing

Public sector net borrowing (often referred to as the deficit) is the difference between total expenditure and receipts. Positive numbers indicate a deficit, while negative numbers indicate a surplus.

Public sector current budget deficit

Public sector current budget deficit is the difference between current expenditure and receipts, after accounting for depreciation. It measures the borrowing needed to fund day-to-day activities and is the reference statistic for a UK government fiscal rule. Positive numbers indicate a deficit, while negative numbers indicate a surplus.

Both current budget deficit and borrowing are recorded on an accrual basis, that is, income when earned and spending when incurred, rather than when cash is paid.

Central government net cash requirement

The central government net cash requirement is the cash the government must raise from financial markets to finance its activities. It reflects the timing of payments and receipts rather than when liabilities arise.

Public sector net debt

Public sector net debt (often referred to as the national debt) measures the public sector's liabilities to the private sector and overseas, net of its liquid financial assets.

Public sector net financial liabilities

Public sector net financial liabilities (often referred to as PSNFL or net financial debt) is a broader balance sheet measure than net debt, capturing all financial assets and liabilities recognised in the national accounts.

PSNFL is the reference statistic for a UK government fiscal rule.

Public sector net worth

Adding non‑financial assets to PSNFL results in public sector net worth, the widest measure of the public sector balance sheet.

About the statistics

About our data sources

Statistical designation

The Office for Statistics Regulation (OSR) independently reviewed the public sector net borrowing, cash requirement and debt statistics in June 2017, concluding that they comply with the standards of trustworthiness, quality, and value in the Code of Practice for Statistics and should be labelled accredited official statistics. 

The public sector net financial liabilities and public sector net financial worth statistics are both official statistics. These measures were introduced after June 2017, so have not yet been reviewed by the OSR. 

The public sector net worth statistics are labelled as official statistics in development. They are based on information from public sector finance and data from ONS's non-financial accounts.

HM Revenue and Customs data quality review

On 8 October 2025, HM Revenue and Customs (HMRC) reported an under-estimation in its VAT cash receipts data for the period April to August 2025. HMRC implemented immediate improvements to quality assurance processes, including comparisons with independent data sources, working with HM Treasury and the Office for National Statistics (ONS). HMRC is carrying out a robust review across all receipts to consider the underlying issue and to identify actions to minimise the risk of similar incidents in future.

We are working with HM Treasury to support this process. The Office for Statistics Regulation will provide an independent perspective on HMRC's review to ensure compliance with the Code of Practice for Statistics.

We reported on progress with work to improve the quality of public sector finance statistics as part of the second quarterly update on the Economic Statistics Plan in our ONS strategic improvement update: April 2026.

Alcohol duties

Duties paid on wine and cider from April 2023 to date are currently undergoing further assurance by HMRC and year-on-year comparisons for these subcomponents over this period should be interpreted with caution until this assurance is complete. Total alcohol duties receipts and total central government tax receipts are unaffected.

Local government data quality

Local government data for the financial year ending (FYE) March 2026 are provisional estimates for the UK. They are largely based on budget data for England, Scotland and Wales, and with estimates included for Northern Ireland.

For the FYE March 2025, estimates of the current expenditure of local authorities in England are based on published second release data, while capital expenditure and receipts are based on published final outturn data.

Estimates for the devolved administrations for the FYE March 2025 are based on published outturn data for Wales and Scotland, and final returned data for Northern Ireland.

In recent years, planned local government current and capital expenditure in local authority budgets have differed from the final outturn expenditure reported in the audited accounts, with current expenditure systematically lower than what was reported at final outturn.

Therefore, we may include adjustments to increase or decrease the amounts reported at the budget stage.

For the FYE March 2026, these adjustments include:

• a £2.0 billion upward adjustment to England's current expenditure

• a £0.5 billion upward adjustment to England's capital expenditure

• a £2.4 billion upward adjustment to Scotland's current expenditure

To reflect the most recently available data for housing benefits, we have applied a further £3.0 billion downward adjustment to current expenditure in the FYE March 2026.