Public sector net borrowing excluding public sector banks was £1.1 billion in July 2025.
This was £2.3 billion less than in July 2024 and the lowest July borrowing for three years, data published by the Office for National Statistics on Thursday (21 August) shows.
Public sector net financial liabilities excluding public sector banks were 83.9% of GDP at the end of July 2025. This was 2.3 percentage points more than at the end of July 2024, but 12.2 percentage points less than for public sector net debt.
Notably, this is the lowest July figure for three years, following the government’s tax rises in April.
Public sector net borrowing is the sum of its current budget deficit and its net investment.
The current budget, which is usually in deficit, can be considered as borrowing to fund day-to-day public sector activities. This is the difference between its current receipts from taxes and other sources and its current expenditure on running public services, grants, and administration.
The current budget was in surplus by £3.3 billion in July 2025; this was a £3.2 billion larger surplus than in July 2024.
Public sector net investment comprises acquisitions less disposals of capital assets (gross fixed capital formation), less the depreciation of capital assets, plus capital grants to the private sector, less capital grants from the private sector.
Net investment was estimated at £4.4 billion in July 2025, which was £0.9 billion more than in July 2024.
“Borrowing this year was £2.3 billion, down on the same month last year, and was the lowest July figure for three years. This reflects strong increases in tax and National Insurance receipts,” said ONS Deputy Director for Public Sector Finances, Rob Doody.
“However, in the first four months of the financial year as a whole, borrowing was £6 billion higher than in the same period in 2024,” he said.
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