Warning over 'fragile' public finances as borrowing rises
The UK borrowed £23.3bn in May, according to official figures, up almost a third on the same month last year.
By BBC News
UK government borrowing rose to £23.3bn in May, official figures show, increasing pressure on the public finances as debt interest, benefits and public service costs climbed.
The UK borrowed £23.3bn in May, official figures show, raising fresh concerns over the state of the public finances.
The Office for National Statistics said public sector net borrowing was £5.4bn higher than in May last year and the second-highest May borrowing figure on record.
The figure was also £5.6bn above the Office for Budget Responsibility’s March forecast, adding pressure on the government as it tries to keep spending, tax and debt under control.
Borrowing is the difference between what the public sector spends and what it receives in income, mainly through taxes.
The ONS said spending on debt interest, public services, investment and benefits all increased compared with May 2025. Higher tax receipts helped offset some of the rise, but not enough to prevent borrowing from increasing.
Debt interest payments were a major factor. They reached £11.7bn in May, up £4.1bn on the same month last year, reflecting the continuing cost of servicing government debt.
Across the first two months of the 2026–27 financial year, borrowing reached £46.3bn. That was £8.9bn more than in the same period a year earlier and £7.7bn above the OBR’s forecast.
Public sector net debt was estimated at 95.1% of gross domestic product at the end of May, underlining how limited the government’s room for manoeuvre remains.
The figures matter for households and businesses because weaker public finances can affect future decisions on tax, spending and investment.
If borrowing continues to run above forecast, the Chancellor may face harder choices over how to fund public services, support economic growth and meet fiscal rules.
Economists have warned that the latest numbers leave the public finances looking fragile, especially while debt interest costs remain high and economic growth is still under pressure.
For Cheshire households, the issue may feel distant, but the consequences can be local. Government borrowing pressures can shape future funding for councils, transport, health, schools, infrastructure and tax policy.
The Treasury said the government remained committed to keeping borrowing under control while investing in public services and the economy.
The next public sector finance figures are due to be published by the ONS in July.