Public sector finances, UK:
August 2022
Main points
• Public sector net borrowing excluding public sector banks (PSNB
ex) was £11.8 billion in August 2022; £2.6 billion less than in
August 2021 but £6.5 billion more than in precoronavirus
(COVID-19) August 2019, when it was £5.3 billion.
• Central government current (or day-to-day) expenditure of £73.2
billion in August 2022 was largely unchanged compared with August
2021, with a £1.5 billion increase in debt interest payable, a
£1.7 billion increase in payment for goods and services and a
£1.1 billion increase in net social benefit payments being offset
by reductions elsewhere, including a £3.4 billion reduction in
subsidy payments.
• Central government debt interest payable was £8.2 billion in
August 2022, £1.5 billion more than in August 2021 and the
highest August figure since monthly records began in April 1997;
the volatility in interest payable is largely because of the
effect of Retail Prices Index (RPI) changes on index-linked
gilts.
• Central government receipts were £69.6 billion in August 2022,
which was £5.6 billion more than in August 2021; of this, tax
receipts were £51.4 billion, which was an increase of £3.9
billion compared with August 2021.
• PSNB ex was £58.2 billion in the financial year to August 2022;
this was £21.4 billion less than in the same period last year but
£30.4 billion more than in the financial year to August 2019,
pre-coronavirus pandemic.
• Central government net cash requirement (excluding UK Asset
Resolution Ltd and Network Rail) was £4.9 billion in August 2022,
which was £3.6 billion less than the £8.5 billion cash deficit in
August 2021; this brought the total to £29.4 billion in the
financial year to August 2022.
• Public sector net debt excluding public sector banks (PSND ex)
was £2,427.5 billion at the end of August 2022, or around 96.6%
of gross domestic product (GDP), which was an increase of £195.2
billion or 1.9 percentage points of GDP compared with August
2021.
• Public sector net debt excluding public sector banks and the
Bank of England (PSND ex BoE) was £2,107.4 billion at the end of
August 2022, or around 83.8% of GDP, which was an increase of
£113.8 billion but a reduction of 0.8 percentage points of GDP
compared with August 2021.
Chancellor of the Exchequer, said:
“Our priority is to grow the economy and
improve living standards for everyone - with strong economic
growth and sustainable public finances going hand in hand.
“As Chancellor, I have pledged to get debt down in the medium
term. However, in the face of a major economic shock, it is
absolutely right that the government takes action now to help
families and businesses, just as we did during the pandemic."
