Public sector finances bulletin and responses

The public sector finances statistical bulletin.

Documents

Public Sector Finances: August 2026

PDF, 1.19 MB, 55 pages

Public Sector Finances, Appendix A: August 2026

MS Excel Spreadsheet, 1.63 MB

Public Sector Finances, Appendix M: August 2026

MS Excel Spreadsheet, 227 KB

Public Sector Finances, Appendix N: August 2026

MS Excel Spreadsheet, 355 KB

Details

The public sector finances statistical bulletin is published jointly by the Office for National Statistics (ONS) and HM Treasury on a monthly basis and provides the latest available estimates for key public sector finance statistics, such as public sector net borrowing, public sector net debt and public sector current budget deficit/surplus.

The bulletin is structured with the latest headline figures, revisions and information on recent events and/or methodological changes which impact on the statistics, located at the front of the bulletin.

Following this there is some contextual information for users and then more detailed information on each of the key aggregates. Historic data on public sector net debt and public sector net borrowing have been included to put the latest figures in context. More detailed notes on the publication are located towards the end of the bulletin.

HM Treasury is no longer producing the public sector finances databank. For information on the key fiscal aggregates:

Go to the OBR for outturn and projected numbers for the key fiscal aggregates in financial years.

Go to the ONS for outturn data of the key fiscal aggregates in quarters, financial years and on a monthly basis.

Go to the ONS for a breakdown on receipts and expenditure.

Chief Secretary to the Treasury, Emma Reynolds, said:

...Britain has huge potential to deliver good growth in every postcode, creating jobs, raising living standards and investing in the services people rely on. But we can only deliver that growth with fiscal
to pay for public services. That is why we are committed to meeting our fiscal rules with a buffer against uncertainty, taking the tough decisions needed to keep the public finances on a sustainable path.

Andrew Griffith MP, Shadow Chancellor, said:

Labour have lost control of the public finances.

They are borrowing so much they've overshot the OBR forecast by an extra £8 billion of debt.

It takes a rare fiscal incontinence to both have the highest tax take in history and see borrowing still shoot up.

Only the Conservatives will make the tough choices on welfare and public spending to get Britain's finances under control.

Nick Ridpath, Research Economist at the Institute for Fiscal Studies, said: 

Today's data shows that government borrowing in the five months since April is running ahead of the official forecast from last March. This data commonly gets revised. In recent years, the first five months' borrowing totals have been revised in both directions by an average of £5 billion, and so it is unwise to read too much into any one set of monthly figures. The numbers do, however, speak to the broad challenges facing the Chancellor. Debt interest spending is a worryingly large share of overall government spending and has been pushed up since the OBR's March forecasts. Both higher borrowing costs and higher inflation make life harder for a Chancellor who is looking to bring down borrowing and to spend more on government priorities.  

Today, the Office for National Statistics published new figures on government revenues, spending and borrowing.  

• Today's data suggests that the government borrowed £77 billion in the first five months of the financial year. That is £8 billion more than the OBR forecast back in March. 

• For context, the OBR's March forecast based on the government's stated plans at the time forecast borrowing of £115 billion over the whole financial year. This would be £19 billion less than last year. 

• Debt interest explained part of the overshoot. In the financial year to date, government spent £50 billion on debt interest, £2 billion more than forecast in March. On those forecasts made before the most recent hikes in government interest rates debt interest was set to be more than £100 billion every year over the next five years.

Dr Valentin Boboc, Senior Economist, Institute of Economic Affairs, said:

Today's figures are another warning that the government cannot tax its way out of Britain's fiscal problems.

Borrowing is already £8 billion higher than the OBR expected at this point in the financial year, putting further pressure on the Chancellor ahead of the Budget.

The problem is not weak revenues. Tax receipts are rising strongly, but spending is rising faster. With debt approaching £3 trillion and the cost of servicing it remaining painfully high, further tax rises would only paper over the cracks.

The Chancellor needs to get a grip on spending and focus on reforms that can deliver stronger economic growth. Without that, Britain will remain stuck in a cycle of higher spending, higher taxes and disappointing growth.