UK Government Borrowing Drops Sharply in Late 2025
At a glance
- December 2025 borrowing fell to £11.6 billion, 38% lower than a year earlier
- ONS attributed the decline to higher tax and National Insurance receipts
- Public sector net debt reached £2,927.7 billion at end of November 2025
Recent data from the UK government shows a notable reduction in monthly borrowing during the final months of 2025, with figures for December and November both lower than in the previous year.
The Office for National Statistics (ONS) stated that the decrease in December 2025 borrowing was linked to stronger receipts from taxes and National Insurance, combined with only modest increases in public spending. Borrowing for December 2025 stood at £11.6 billion, which was below both the December 2024 figure and the forecast made by economists for that month.
For the first nine months of the fiscal year starting in April 2025, cumulative government borrowing reached £140.4 billion. This total was £0.3 billion less than the amount recorded over the same period in the previous fiscal year, indicating a slight year-on-year improvement.
In November 2025, public sector net borrowing was reported at £11.7 billion, a decrease of £1.9 billion compared to November 2024. The reduction was attributed to increased tax and National Insurance receipts during the month.
What the numbers show
- December 2025 borrowing: £11.6 billion, 38% lower than December 2024
- November 2025 borrowing: £11.7 billion, £1.9 billion less than November 2024
- Public sector net debt at end of November 2025: £2,927.7 billion (95.6% of GDP
- October 2025 borrowing: £17.4 billion, £1.8 billion lower than October 2024
Figures for October 2025 also showed a reduction in borrowing, with the total at £17.4 billion, which was £1.8 billion lower than in October 2024. This period saw central government current receipts reach £86.4 billion, an increase of £5.8 billion compared to the same month a year earlier.
In October 2025, the rise in receipts included a £3.0 billion increase in tax revenues and a £2.8 billion increase in social contributions. These developments contributed to the overall improvement in the government's monthly fiscal position.
Compulsory social contributions in November 2025 rose by £3.0 billion year-on-year, reaching £17.2 billion. This increase reflected changes to employer National Insurance rates that took effect from April 2025.
At the end of November 2025, public sector net debt, excluding public sector banks, was provisionally estimated at £2,927.7 billion. This amount represented 95.6% of the UK's gross domestic product at that time.
* This article is based on publicly available information at the time of writing.
Sources and further reading
More on Business
-
Trump Proposes 10 Percent Cap on Credit Card Interest Rates
A proposal outlines a 10 percent cap on credit card interest rates, set to take effect on January 20, 2026, according to reports.
-
Next Acquires Russell & Bromley Brand and Three Stores in Pre-Pack Deal
Next has acquired Russell & Bromley and three stores for £2.5 million, according to reports. 33 locations remain outside the acquisition.
-
US Stock Markets Experience Sharp Decline Amid Tariff Announcement
The S&P 500 recorded its largest one-day decline since October, following new tariffs on European imports, according to market data.
-
Netflix Revises Warner Bros. Discovery Bid to $82.7 Billion All-Cash Offer
A revised proposal values the all-cash offer at $82.7 billion, with board support noted. A shareholder vote is anticipated by April 2026.
-
Trump’s Greenland Remarks Viewed as Negotiating Posture by Experts
A proposal for acquiring Greenland has been made since Trump's first term, according to Brookings analysis. Experts interpret this as a tactic.