Public Sector Net Borrowing

Public sector net borrowing excluding public sector banks, known as PSNB ex, measures the gap between UK public spending and income. Commentators often call it the deficit. It covers 6 public sub-sectors and positive values show borrowing while negative values show surplus. It is not debt and borrowing is the flow over a period while debt is the amount owed at a point in time.

Each bulletin covers 1 reference month plus financial-year-to-date totals. It is compiled between the 1st and 13th working days of the month. It appears generally at 7:00am UK time on the 15th working day after the reference month. Publication moves to Tuesday if the 15th working day is a Monday.

Dates are pre-announced 12 months ahead and first estimates use forecasts revised monthly. Revisions widen each September with annual data and method improvements. Each release brings appendix and summary tables and benchmarks estimates against Office for Budget Responsibility forecasts. Use year-on-year and year-to-date comparisons because single months are volatile and January often shows a surplus on self-assessed tax.

Borrowing moves with the day-to-day balance, capital spending and the mix across sub-sectors.

• Current budget deficit: captures day-to-day spending plus depreciation less day-to-day income, excluding investment.
• Net investment: captures spending on capital assets like infrastructure, property and IT, less proceeds from asset sales.
• Central government net borrowing: typically drives monthly moves through tax income, debt interest, social benefits, goods and services and transfers to local government.
• Local government net borrowing: reflects annual returns, with in-year budget estimates later replaced by outturn.
• Public corporations, pensions and Bank of England: covers corporate borrowing plus highly provisional pension and Bank data, reported with about a one-month lag.

In October 2024 borrowing was £17.4bn, £1.6bn more than in October 2023. That was the second highest October borrowing since monthly records began in January 1993. The current budget deficit was £12.7bn, up £0.4bn, and net investment was £4.7bn, up £1.1bn, so most of the yearly rise came from investment.

Central government debt interest payable was £9.1bn, up £0.5bn, the highest October figure since monthly records began in January 1997. The total included a £3.8bn RPI inflation uplift on inflation-linked bonds.

Financial-year borrowing to October 2024 was £96.6bn, up £1.1bn, the third highest financial year to October since January 1993. Within it the current budget deficit improved to £64.1bn, down £4.5bn, while net investment rose to £32.6bn, up £5.5bn. Asset Purchase Facility transfers between the Treasury and the Bank of England are within the public sector and leave the headline unchanged. The October 2024 data were published November 21, 2024.

1. Current budget balance: Subtract day-to-day income from day-to-day spending plus depreciation. For example, £109.0bn plus £3.7bn less £100.0bn leaves a £12.7bn deficit.
2. Net investment: Subtract asset-sale proceeds from capital spending on infrastructure, property and IT. For example, £6.0bn less £1.3bn leaves £4.7bn.
3. Total spending and receipts: Add current spending plus net investment, without adding depreciation twice, and add income plus net capital transfers. Total borrowing is £12.7bn plus £4.7bn, giving £17.4bn.
4. Headline borrowing and presentation: Add the 2 parts, so positive means deficit and negative means surplus. Record transactions on an accruals basis, when activity occurs, in current prices without seasonal adjustment. Express borrowing as a share of GDP for the prior 12 months and compare year on year, never month on month.