Public sector finances, UK: May
2026
Chief Secretary to the Treasury, said:
Inflation has held steady and unemployment has fallen
this week, but the war in the Middle East has clearly had
an impact on economies around the world.
We have the right economic plan to deal with these challenges -
protecting families and businesses from rising costs, while
cutting borrowing at a faster rate than any other G7 economy.
Background
- Public Sector Net Borrowing (PSNB) was £23 billion lower
in 2025-26 compared to 2024-25.
- Between 2025-2030, the IMF forecast the UK will be reducing
borrowing more than any other G7 country
- The IMF and OECD upgraded the UK's growth forecasts in May,
despite the impacts of the war in the Middle East.
- Inflationfell to 2.8%in April- duein parttogovernment
measures in the budget to lower household energy bills and
has remained at 2.8% in May.
Conservatives
Shadow Chancellor Sir said:
"Borrowing is out of control - up by 30% compared to last year -
and now we're about to see what a real left wing Labour
government looks like under Andy .
"Burnham claims he is committed to the fiscal rules, yet when
asked he could not even say what they are. The bond markets are
watching nervously and we have already been paying a Burnham
Penalty on our borrowing costs. Meanwhile, Reform have been busy
pledging tens of billions in unfunded promises in their
desperation to win in Makerfield.
"The Conservatives are the only party with a plan to balance the
books by getting spending under control, especially the welfare
bill, in line with our Golden Economic Rule."
