Public sector finances, UK:
April 2026
Chief Secretary to the Treasury, , Responds to Public Sector
Finances Statistics
Chief Secretary to the Treasury, said:
"Earlier this week the IMF agreed we had the right economic plan
to reduce the deficit.
“We are cutting borrowing and debt – with our actions reducing
government borrowing by over £20 billion last year - while
driving growth through £120 billion of additional capital
investment over the Parliament.
"Working families have benefited from falls in inflation and cuts
to interest rates - and our non-negotiable fiscal rules will be
all the more important to continue to protect them as we face the
consequences of the war that we have played no part in."
Notes to editors
Background:
- These statistics at the start of a new financial year are
more prone to revision than other months.
- Borrowing had been stuck at around 5% of GDP for 4 years –
but because of the actions of this Government, borrowing fell by
1ppt to its lowest level for six years.
- Public Sector Net Borrowing (PSNB) was over
£20 billion lower in 2025-26 compared to
2024-25.
- This year (2026), for the first time since 2004, we will be
borrowing less than the rest of the G7 on average.
- Between 2025-2030, the UK will be reducing borrowing more
than any other G7 country
- We have increased our headroom against the stability rule to
£23.7bn so that we can weather shocks and keep borrowing costs
down.
