Key facts
- UK government borrowed £18.3 billion in August, exceeding economists' forecasts.
- The cumulative deficit for the financial year to date stands at £77.3 billion.
- This year-to-date deficit is £8.1 billion higher than the Office for Budget Responsibility had expected.
- Government spending on goods and services and welfare benefits linked to inflation offset strong tax receipts.
- The current budget deficit for the year to date is £51.9 billion, higher than the OBR's forecast of £47.1 billion.
Britain's government borrowed more than expected in August, pushing the deficit for the financial year so far further above official forecasts and adding to a tough backdrop for finance minister John Healey ahead of his first budget.
The Office for National Statistics (ONS) reported public sector net borrowing of £18.3 billion ($24.5 billion) in August, exceeding all forecasts in a Reuters poll of economists which had pointed to a £15.5 billion deficit. The ONS also revised up borrowing for each of the previous four months of the 2026/27 financial year.
The April-August cumulative deficit stood at £77.3 billion pounds, which was £2.2 billion less than at the same point in 2025/26, but £8.1 billion higher than the Office for Budget Responsibility (OBR) had expected at this point in the year. An ONS statistician noted that while tax receipts had looked strong, this had been offset by rising government spending on goods and services and welfare benefits linked to inflation.
The current budget deficit, or the difference between day-to-day spending and tax revenue, stood at £51.9 billion in the year to date, higher than the OBR's forecast for £47.1 billion at this point in the year.