UK Public Finances Analysis
BetaSpending, receipts, borrowing, and debt for 2024-25 and 2025-26 outturns plus the OBR's 2026-27 forecast — from ONS Public Sector Finances, the OBR's Economic and Fiscal Outlook, and HMRC receipts statistics. The UK's April–March fiscal year matches India's, making like-for-like year comparisons possible.
2025-26 at a Glance (Provisional Outturn)
Total Spending (TME)
£1.36 trillion
Provisional outturn
Total Receipts
£1.23 trillion
Record HMRC take £938.8bn
Net Borrowing
£128.0 billion
4.2% of GDP
Debt Interest
£110.0 billion
~8% of total spending
Net Debt
£2.91 trillion
93.8% of GDP
State Pension
£145.6 billion
Largest single programme
FY2025-26 (Apr 2025 – Mar 2026)
Provisional outturn — ONS Public Sector Finances
Where the money comes from
Where the money goes
* Defence (core budget): Core budget basis, narrower than the PESA function
What shaped 2025-26
- The employer National Insurance increase took effect in April 2025, driving HMRC receipts up 9.3% to a record £938.8 billion.
- Borrowing of £128.0 billion (4.2% of GDP) came in below both OBR forecasts (£138bn in November 2025, £132.7bn in March 2026) — the first substantial year-on-year decline since the pandemic peaks.
- The Autumn Budget 2025 (26 November 2025) legislated tax rises reaching £26 billion a year by 2029-30 — extending income tax and NICs threshold freezes to 2030-31 — while abolishing the two-child limit in Universal Credit.
- Spending Review 2025 set NHS day-to-day spending up £29 billion a year in real terms and put defence on a path to 2.6% of GDP by 2027.
Sources: ONS Public Sector Finances (March & June 2026 bulletins) · HMRC tax receipts annual bulletin · IFS: Autumn Budget 2025 initial response
FY2024-25 (Apr 2024 – Mar 2025)
Outturn — ONS Public Sector Finances
Where the money comes from
Where the money goes
What shaped 2024-25
- The final full year before the Autumn Budget 2025, governed by the fiscal framework set at Autumn Budget 2024: current budget balance by 2029-30 and net financial liabilities falling.
- Borrowing of £151.9 billion (5.2% of GDP) overshot official forecasts and became the benchmark against which 2025-26’s improvement was measured.
- Defence recorded the largest real-terms rise of any spending function (+7.7%), per HM Treasury’s PESA outturn.
Sources: ONS Public Sector Finances (March 2026 bulletin) · Commons Library: Public spending statistics (CBP-8046) · Commons Library: Government debt and deficit (CBP-10842)
FY2026-27 (Apr 2026 – Mar 2027) — Forecast
OBR March 2026 forecast (absolute totals sit in OBR PDF tables; sourced ratios shown)
Borrowing path: OBR projects borrowing falling every year from £133bn in 2025-26 to £59bn by 2030-31 — roughly £110-115bn in 2026-27 (3.6% of GDP).
State pension
£153.2bn (+£7.6bn under the triple lock; full new state pension £241.30/week)
Debt interest (net of APF)
£109.4bn forecast; in-year outturns running ~31% below 2025 levels on lower RPI
Departmental day-to-day spending (RDEL)
£520.0bn voted in Main Estimates (projected £548bn with later additions), plus £135.3bn capital DEL
Gilt issuance
Cut to £252.1bn (from over £300bn in 2025-26) on stronger receipts
- The March 2026 Spring Statement contained no new tax or spending measures; the OBR revised borrowing about £8 billion lower by 2030-31 on stronger receipts, with headroom of £23.6 billion against the stability rule.
- 2026 real GDP growth was downgraded from 1.4% to 1.1%, with CPI inflation around 2.3% and tax receipts heading toward a record ~38% of GDP by 2029-30.
- First-quarter borrowing (Apr–Jun 2026) was £57.6 billion, £2.7 billion above the OBR profile, though June alone came in below profile as index-linked debt interest fell.
- The mid-2026 change of government (Andy Burnham as Prime Minister, John Healey as Chancellor) came with pledges to keep the existing fiscal rules.
Sources: OBR Economic and Fiscal Outlook, March 2026 · Commons Library: Spring Statement 2026 (CBP-10495) · ONS Public Sector Finances, June 2026
Quick Answers
How much did the UK government borrow in 2025-26?
Provisional ONS outturn puts 2025-26 public sector net borrowing at £128.0 billion, or 4.2% of GDP — below both OBR forecasts and about £24 billion less than 2024-25's £151.9 billion, the first substantial year-on-year decline since the pandemic peaks.
How does the UK fiscal year relate to India's?
The UK financial year runs 1 April to 31 March — the same cycle as India’s. The headline deficit measure is public sector net borrowing (PSNB ex banks); spending is Total Managed Expenditure (TME); debt is public sector net debt (PSND ex banks). ONS publishes monthly outturns, the OBR produces official forecasts, and HM Treasury sets plans at Budgets and Spending Reviews.
How does UK borrowing compare with India's deficit?
Both countries run April–March fiscal years, so 2026-27 aligns exactly: the OBR projects UK borrowing at 3.6% of GDP while India's Union Budget targets a central fiscal deficit of 4.3% of GDP. The measures differ — the UK's PSNB covers the whole public sector, while India's figure is the central government alone (adding states takes India's consolidated deficit to roughly 7–8% of GDP).
UK coverage is in beta. Full year-by-year UK budget pages with departmental breakdowns and interactive charts follow the India model as coverage expands — see our India Union Budget 2026-27 analysis for the depth every country section is built toward. Also new: US Federal Budget analysis.