The UK government borrowed £18.3bn in August, according to the latest public finances data. This amount is £2.9bn higher than in August 2025, as government spending increased at a faster rate than its income.
The August borrowing figure exceeded the City's forecast of £15.6bn and was £3.5bn above the Office for Budget Responsibility's (OBR) projection for the month. This means that the UK has borrowed £8.1bn more than the OBR's forecast so far this financial year.
Emeritus Professor Joe Nellis, head of economic research at MHA, described the data as "another reminder of the fiscal straightjacket facing the Government" ahead of next month's budget. He noted that higher inflation is affecting spending on public-sector pay, state benefits, and pensions, with inflation hitting 3.1% last week.
The cost of servicing the national debt also remains high, with public sector net debt just under £3 trillion, representing approximately 94% of GDP. Despite the August increase, borrowing in the financial year to date, at £77.3bn, is £2.2bn lower than in the same period last year, though still £8.1bn above the OBR forecast.