Public sector finances, UK: November 2025

• Borrowing - the difference between total public sector spending and income - was £11.7 billion in November 2025; this was £1.9 billion (or 14.0%) less than November 2024 and the lowest November borrowing since 2021 (not adjusted for inflation).

• Borrowing in the financial year to November 2025 was £132.3 billion; this was £10.0 billion (or 8.2%) more than in the same eight-month period of 2024 and the second-highest April to November borrowing on record (not adjusted for inflation), after that of 2020.

• Borrowing in the financial year to November 2025 was provisionally estimated at 4.4% of gross domestic product (GDP); this was 0.1 percentage points more than in the same eight-month period of 2024.

• The current budget deficit - borrowing to fund day-to-day public sector activities - was £5.6 billion in November 2025; this brings the total current budget deficit in the financial year to November 2025 to £93.0 billion, which is £7.0 billion (or 8.1%) more than in the same eight-month period of 2024.

• 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 95.6% of GDP at the end of November 2025; this was 0.3 percentage points more than at the end of November 2024 and remains at levels last seen in the early 1960s.

• Public sector net financial liabilities excluding public sector banks - a wider range of financial assets and liabilities than net debt - were provisionally estimated at 85.1% of GDP at the end of November 2025; this was 2.7 percentage points more than at the end of November 2024, but 10.5 percentage points less than for public sector net debt.

• Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) - the additional cash needed to be raised from the financial markets to finance activities - was £13.6 billion in November 2025; this was £2.7 billion (or 16.8%) less than in November 2024.

Initial estimates show that the public sector spent more than it received in taxes and other income in November 2025, requiring it to borrow £11.7 billion. This was £1.9 billion, or 14.0% less than in November 2024.

Public sector net borrowing is the sum of its current budget deficit and its net investment.

The current budget, which is usually in deficit, can be considered as borrowing to fund day-to-day public sector activities. This is the difference between its current receipts from taxes and other sources and its current expenditure on running public services, grants and administration.

The current budget deficit was £5.6 billion in November 2025, which was £3.8 billion (or 40.5%) less than in November 2024.

Public sector net investment comprises acquisitions less disposals of capital assets (gross fixed capital formation), less the depreciation of capital assets, plus capital grants to the private sector, less capital grants from the private sector.

Net investment was £6.1 billion in November 2025, which was £1.9 billion (or 45.8%) more than in November 2024. This increase was largely because of a £1.6 billion payment that Sizewell C was obliged to make to Hinkley Point C under an agreement that was reached between EDF and the UK government in 2013. This payment was provisionally recorded as central government gross capital formation. It is effectively cost neutral to the consumer and has been included in the UK government's Value for Money assessment.

More details about this payment are provided in the UK Parliament's Written questions and answers on this topic and the government's Initial agreement reached on new nuclear power station at Hinkley press release.

A breakdown of net borrowing by subsector and a summary of central government receipts and expenditure data are presented in Tables 1 to 3 in our Public sector finances summary tables: Appendix M dataset.

Our Public sector finances borrowing by subsector: Appendix R dataset provides further detail on data presented in Table 1, including transactions related to borrowing by each subsector and their contribution to total public sector borrowing in a matrix table format. The time period presented in the matrix table can be changed using the dropdown box feature.

Central government borrowing

Central government forms the largest part of the public sector and includes government departments such as HM Revenue and Customs, the Department of Health and Social Care, the Department for Work and Pensions, the Department for Education, the Ministry of Defence and other government agencies.

The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Of the £11.7 billion borrowed by the public sector in November 2025, central government borrowed £7.3 billion.

Central government current receipts

Central government's current receipts were £86.1 billion in November 2025, which is £5.4 billion (or 6.7%) more than in November 2024. Of this £5.4 billion increase in income:

• central government tax receipts increased by £2.5 billion to £63.5 billion; this included increases of £1.2 billion in Income Tax, £0.8 billion in Value Added Tax (VAT) and £0.4 billion in Corporation Tax receipts

• compulsory social contributions increased by £3.0 billion to £17.2 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 spending data for November 2025 are provisional. There is uncertainty around these estimates until more detailed departmental information becomes available over time.

Central government's current expenditure was provisionally estimated as £83.5 billion in November 2025, which is £1.3 billion (or 1.6%) more than in November 2024. Of this £1.3 billion increase in spending:

• net social benefits paid by central government increased by £1.5 billion to £26.8 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 £0.8 billion to £38.2 billion, as pay rises and inflation increased running costs

• payments to support the day-to-day running of local government decreased by £0.5 billion to £10.1 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 payable decreased by £0.2 billion to £3.4 billion, with movements in the Retail Prices Index (RPI) adding volatility to the monthly debt interest costs

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.

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.

The £3.4 billion interest payable on central government debt in November 2025 includes a negative capital uplift of £2.5 billion. This largely reflects the 0.4% decrease in the RPI between August and September 2025.

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.

The public sector spent more than it received in taxes and other income in the financial year (FY) to November 2025. Provisional estimates show it has borrowed £132.3 billion over the eight-month period.

Borrowing in the FY to November 2025 was £10.0 billion, or 8.2% more than in the FY to November 2024. This is the second-highest FY to November borrowing since monthly records began in 1993, after that of April to November 2020 during the coronavirus (COVID-19) pandemic period (not adjusted for inflation).

Of the £132.3 billion borrowed by the public sector in the FY to November 2025, the current budget deficit was £93.0 billion. This was £7.0 billion (or 8.1%) more than in the same eight-month period a year ago. Public sector net investment increased by £3.1 billion (or 8.4%) to £39.3 billion over the same eight-month period.

Central government net borrowing

The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Of the £132.3 billion borrowed by the public sector in the FY to November 2025, central government borrowed £135.2 billion, with some other subsectors showing a surplus.

Tables 1 to 3 in our Public sector finances summary tables: Appendix M dataset provide an extended presentation of Table 2 and a summary of central government receipts and expenditure data.

Central government current receipts

Central government's current receipts were £692.6 billion in the FY to November 2025, which is £45.2 billion (or 7.0%) more than in the same eight-month period a year ago. Of this £45.2 billion increase in income:

• central government tax receipts increased by £25.2 billion to £515.8 billion; this included increases of £13.9 billion in Income Tax, £5.2 billion in Value Added Tax (VAT) and £2.5 billion in Corporation Tax receipts

• compulsory social contributions increased by £21.0 billion to £131.2 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 was provisionally estimated at £736.3 billion in the FY to November 2025, which is £55.4 billion (or 8.1%) more than in the same eight-month period a year ago. Of this £55.4 billion increase in spending:

• central government departmental spending on goods and services increased by £22.1 billion to £305.9 billion, as pay rises and inflation increased running costs

• net social benefits paid by central government increased by £15.1 billion to £219.3 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 £13.1 billion to £71.1 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 £1.2 billion to £99.6 billion; these intra-government transfers have no impact on overall public sector borrowing

Central government net investment

Central government net investment was £62.7 billion in the FY to November 2025, which is £9.8 billion less than in the same eight-month period a year ago. Over this period, central government made payments totalling £14.1 billion to the Bank of England (BoE) Asset Purchase Facility Fund, which is £16.7 billion less than in the same eight-month period of 2024. These payments are recorded as both central government net investment expenditure and BoE receipts, so have no impact on overall public sector borrowing.

Local government

Initial estimates suggest that local government borrowing was £5.6 billion in the FY to November 2025. This was £0.4 billion (or 6.3%) less than in the same period a year earlier.

Local government data for the financial year to November 2025 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.

Provisional estimates show the public sector borrowed £152.6 billion in the financial year ending (FYE) March 2025. This was the third-highest amount borrowed in any financial year since records began in 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 provides a more consistent measure for comparison of the UK's fiscal position over time.

Borrowing in the first eight months of the current financial year was provisionally estimated at 4.4% of GDP. This was 0.1 percentage points more than during the same period in 2024 and was the tenth-highest borrowing ratio in any April to November period since monthly records began in 1993.

We describe the methodology used for the presentation of our GDP ratios in our The use of GDP in public sector fiscal ratio statistics methodology.

The public sector balance sheet describes its financial position at a point in time. It shows its liabilities (amounts owed) and its assets (amounts owned). 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 post.

As a part of the Bank of England's (BoE) quantitative easing activities, 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 impact on 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 3.

Public sector net debt

Public sector net debt excluding public sector banks (PSND ex) 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 November 2025 was provisionally estimated at 95.6%, which is 0.3 percentage points more than a year ago. However, this is a highly provisional estimate.

Public sector net financial liabilities

Public sector net financial liabilities (PSNFL ex) adds further financial assets and financial liabilities to those recorded in debt (PSND ex).

These extra financial assets are currently valued at more than the extra financial liabilities. This means that at 85.1 % of GDP, PSNFL ex was 10.5 percentage points of GDP less than PSND ex at the end of November 2025.

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

Additionally, we published a blog post 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 ex that fall outside of the PSND ex boundary are not updated monthly. Instead, they are updated quarterly, or when data become available. These data were updated on 19 December 2025 and will next be updated on 20 March 2026.

A more detailed presentation of the public sector balance sheet is available in our Public sector net worth: Appendix O dataset, released on 19 December 2025.

The independent 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 forecast was published in the OBR's Economic and fiscal outlook - November 2025 report. We expect corresponding monthly profiles to be published in January 2026.

UK fiscal targets

The UK government has legislated for 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 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 £76.6 billion in the FYE March 2025; this was £10.2 billion more than in the FYE March 2024

• PSNFL was provisionally estimated at 81.2% of GDP at the end of March 2025; this was 1.5 percentage points more than at the end of March 2024

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.

Tables 4 to 6 of our Public sector finances summary tables: Appendix M dataset compare our latest public sector finances data with those in our Public sector finances, UK: October 2025 bulletin, published on 21 November 2025. They highlight the revisions to borrowing by subsector, with additional detail for central government receipts and expenditure.

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.

Notable updates in December 2025

We update our dataset each quarter with statistics compiled within the national accounts.

For parts of our dataset sourced from annual published accounts or annual surveys, we make regular annual updates when this information becomes available. This month, we have included regular annual updates for elements of public sector-funded pensions and Pool Re Nuclear.

Regular updates for local government

We have updated our previous local government estimates with recently published data this month. These updates include:

• Ministry of Housing, Communities and Local Government (MHCLG) final outturn capital expenditure data for England for financial year ending (FYE) March 2025

• MHCLG capital payments and receipts second update for England, up to and including the quarter ending September 2025

• MHCLG financial accounts data for England, up to and including the quarter ending September 2025

• Welsh Government revenue and expenditure outturn data for Wales for FYE March 2025

• Welsh Government capital expenditure outturn data for Wales for FYE March 2025

Regular updates for public corporations

We have updated our previous non-financial public corporations estimates with recently published data this month, most notably Housing Revenue Account data for the financial year to October 2025. We have also updated our forecasts for FYE March 2026 to include estimates based on the Office of Budget Responsibility's (OBR's)Economic and fiscal outlook - November 2025 report.

Revisions to public sector net borrowing in the financial year to October 2025

Since publishing our Public sector finances, UK: October 2025 bulletin, we have increased our estimate of public sector net borrowing (PSNB ex) in the first seven months of the financial year by £3.9 billion to £120.7 billion.

We have increased our previous estimate of central government borrowing by £5.9 billion. This change was largely because of a £2.1 billion reduction in our previous estimate of corporation tax receipts by HM Revenue and Customs, which now include estimates of future cash receipts based on the OBR's Economic and fiscal outlook - November 2025 report. Additionally, our previous estimate of spending on social benefits has increased by £1.8 billion, which includes the latest figures supplied by the Department for Work and Pensions for Winter Fuel Payments, after a widening in eligibility.

This increase in central government net borrowing was partially offset by a £1.7 billion reduction in our previous estimate of local government borrowing. Our estimates have been updated to include MHCLG capital payments and receipts second update for England, up to and including the quarter ending September 2025.

Revisions to public sector net borrowing in the financial year ending March 2025

Since publishing our Public sector finances, UK: October 2025 bulletin, we have increased our estimate of PSNB ex in FYE March 2025 by £2.8 billion to £108.8 billion. Of this £2.8 billion upward revision to borrowing, we have:

• increased our previous estimate of central government borrowing by £1.3 billion, largely because of a reduction of £1.4 billion to our estimate of corporation tax receipts following the latest OBR forecast

• increased our previous estimate of local borrowing by £1.7 billion, largely because of an increase to our previous estimate of local government spending, which has been updated to include the latest published data

Revisions to public sector net debt at the end of October 2025

We have reduced our estimate of public sector net debt (PSND ex) at the end of October 2025 by £9.6 billion to £2,895.3 billion.

Of the £9.6 billion downward revision to debt, £4.2 billion was because of regular monthly updates to data used to estimate the Bank of England's contribution to debt, which are published one month in arrears.

The remaining £5.4 billion was largely a combination of regular annual updates to our public sector funded pensions data and regular quarterly updates to our local government data.

Revisions to public sector net financial liabilities at the end of October 2025

We have reduced our estimate of public sector net financial liabilities (PSNFL) at the end of October 2025 by £10.2 billion to £2,573.3 billion. Of this £10.2 billion downward revision to PSNFL, £9.6 billion was because of the downward revision to debt.

The remaining £0.6 billion change to PSNFL was because of regular quarterly updates to the financial assets and liabilities included in PSNFL but not in debt.

This month, the upward revision to the additional financial assets, spread across several categories, exceeded the upward revision to the additional (mainly pension) financial liabilities.

Revisions to GDP

This month we have updated our previous estimates of nominal gross domestic product (GDP) to include the forecast in the OBR's Economic and fiscal outlook - November 2025 report, published on 26 November 2025.

A reduction in the OBR forecast of GDP, compared with its Economic and fiscal outlook - March 2025 report, has increased our headline balance sheet figures expressed as a ratio of GDP reduced in recent periods.

Our estimate of public sector net debt as a ratio of GDP at the end of October 2025 increased by 0.3 percentage points from 94.5% to 94.8%. This was in part because of our update to GDP and in part because of the reduction of £9.6 billion to our previous estimate of net debt.

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

Public sector

In the UK, the public sector consists of six subsectors: central government, local government, public non-financial corporations, public-sector-funded pensions, the Bank of England (BoE), and public financial corporations (including public sector banks). The figures presented in this release exclude public sector banks unless otherwise noted.

The NatWest Group, the last remaining public sector bank, was reclassified to the private sector as of June 2024.

Public sector current budget deficit

Public sector current budget deficit (PSCBD) is the gap between current expenditure and current receipts on an accruals basis, having taken account of depreciation. PSCBD is effectively an estimate of borrowing to fund day-to-day public sector activities and is the reference statistic used for a UK government fiscal rule.

The current budget is in surplus when receipts are greater than expenditure and is indicated with a negative sign.

Public sector net borrowing

Public sector net borrowing (PSNB) is the gap between total expenditure and current receipts on an accruals basis. If receipts exceed expenditure, this is referred to as a surplus and is indicated with a negative sign. Borrowing is often referred to by commentators as "the deficit".

Public sector current budget deficit and net borrowing are measured on an accruals basis, where transactions for income are recorded when earned and expenses are recorded when incurred, rather than when the bills are paid (on a cash basis). 

Central government net cash requirement

The central government net cash requirement (CGNCR) represents the cash needed to be raised from the financial markets over a period to finance its activities. The amount of cash required will be affected by changes in the timing of payments to and from the public sector, rather than when these liabilities were incurred.

Public sector net debt

Public sector net debt (PSND), often referred to by commentators as "the national debt", is a measure of the amount of money the public sector owes to the private sector and overseas (in the form of loans, debt securities, deposit holdings and currency), net of liquid financial assets held.

Public sector net financial liabilities

Public sector net financial liabilities (PSNFL) is a wider measure of the balance sheet than public sector net debt and includes all financial assets and liabilities recognised in the national accounts. PSNFL is the reference statistic used for a UK government fiscal rule and is sometimes referred to as "net financial debt".

Broadening the PSNFL measure to include the public sector's non-financial assets provides public sector net worth (PSNW), our widest balance sheet measure.

Methodology guides

To supplement this release, we publish our accompanying Monthly statistics on the public sector finances: a methodological guide and Public sector finances quality and methodology information (QMI) outlining the strengths, limitations, and appropriate uses of government finance statistics.

We also explain the recording of interest payable to holders of UK government gilts in the UK public sector finances in our Calculation of interest payable on government gilts methodology and our Use of gross domestic product (GDP) in public sector fiscal ratio statistics methodology.

Statistical designation

The Office for Statistics Regulation (OSR) independently reviewed the public sector net borrowing, cash requirement and debt accredited official statistics in June 2017. 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". We are developing how we collect the data and produce the statistics to improve their quality. 

Central government

In the most recent months, tax receipts recorded on an accrued basis are subject to some uncertainty. This is because many taxes such as Value Added Tax (VAT), Corporation Tax, and Pay As You Earn (PAYE) Income Tax contain some forecast cash receipts data and are liable to revision when actual cash receipts data are received.

The forecasts underlying our current tax estimates largely reflect the expectations published in the Office for Budget Responsibility's (OBR's) Economic and fiscal outlook - March 2025 report. Estimates of corporation tax receipts have been updated to incorporate provisional estimates based on the OBR's Economic and fiscal outlook - November 2025 report.

New monthly receipts profiles consistent with the OBR’s Autumn 2025 Budget will be used to inform our Public Sector Finances, UK January 2026 statistical bulletin on 20 February 2026. This update will result in revisions to some of our tax estimates, such as VAT and corporation tax for the latest months.

On 8 October 2025, HM Revenue and Customs (HMRC) reported an underestimation in its VAT cash receipts data for the period April to August 2025. HMRC has 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 will also carry 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.

The ONS and HM Treasury are engaging with this process to lend their support to it. The Office for Statistics Regulation will provide an independent perspective on HMRC's review to ensure compliance with the Code of Practice for Statistics.

The ONS reported on progress with work to improve the quality of public sector finance statistics as part of the first quarterly update on the Economic Statistics Plan in our ONS strategic improvement update: December 2025, published 4 December 2025.

Local government

Local government data for the financial year (FY) to November 2025 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 financial year ending (FYE) March 2025, estimates of the current expenditure of local authorities in England are based on published first release data, while capital expenditure and receipts are based on published final outturn data.

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

In recent years, planned local government expenditure initially reported in local authority budgets has been systematically lower than final outturn current expenditure reported in the audited accounts, and generally higher than that reported in final outturn capital expenditure. Therefore, we may include adjustments to increase or decrease the amounts reported at the budget stage.

For FYE March 2025, these adjustments include:

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

For the FY to November 2025, these adjustments include:

• a £1.2 billion upward adjustment to England's current expenditure

• a £0.3 billion upward adjustment to England's capital expenditure

• a £1.6 billion upward adjustment to Scotland's current expenditure

To reflect the most recently available data for housing benefits, we have applied a further £1.8 billion downward adjustment to current expenditure in the FY to November 2025. 

Public corporations

Data for public corporations in the FY to November 2025 are highly provisional initial estimates for the UK. They are largely based on the OBR's Economic and fiscal outlook - November 2025 report.

Data for public corporations in FYE March 2024 and FYE March 2025 remain largely based on the OBR's Economic and fiscal outlook - October 2024 report, and are supplemented by in-year estimates for train operating companies, the Housing Revenue Account, and surveyed public corporations.