MNI BRIEF:UK YTD Government Borrowing At 5-Year High In August

UK government borrowing hit GBP18 billion in August, the second highest reading for the month on record, beaten only by the same period in 2020 at the height of the pandemic, the Office for Nartional Statistics said on Friday.

Borrowing in the financial year to date was GBP83.8 billion, GBP16.2 billion more than in the same five-month period last year and the second-highest April-to-August borrowing since monthly records began in 1993. Public sector net debt excluding public sector banks was provisionally estimated at 96.4% of gross domestic product (GDP) at the end of August 2025; 0.5pp more than at the end of August 2024 at levels last seen in the early 1960s. Public sector net financial liabilities excluding public sector banks were provisionally estimated at 84.5% of GDP.

“Although overall tax and National Insurance receipts were noticeably up on last year, these increases were outstripped by higher spending on public services, benefits and debt interest," ONS chief economist Grant Fitzner said.

The data highlights the challenges facing Chancellor Rachel Reeves ahead of the November budget, with her fiscal rules at risk of being breached. (see MNI INTERVIEW: UK Needs To Slash Spending Share Of GDP- Chadha )