Chief Secretary to the Treasury responds to ONS Public Sector Finances: January 2026

Public sector finances, UK: January 2026

Chief Secretary to the Treasury, James Murray Said:

"We have the right plan to build a stronger, more secure economy. We have doubled our headroom, we are bringing inflation down, we are making sure that taxpayers' money is spent wisely, and borrowing this year is forecast to be the lowest since before the pandemic.

“We know there is more to do to stop one in every £10 the government spends going on debt interest, and we will more than halve borrowing by 2030-31 so that money can be spent on policing, schools and the NHS."

Background: 

• Government borrowing this year is forecast to be the lowest in 6 years as a share of GDP, and we're reducing borrowing more than any other G7 country between 2025 and 2030. It is forecast to more than half from 4.5% in 2025-26 to 1.9% in 2030-31. 
• Net financial debt (PSNFL) is forecast to be lower as a share of GDP by the end of the forecast (2030-31) than today (2025-26).