UK public sector net borrowing reaches £18.3 billion in August 2026, second-highest August on record

  • UK public sector borrowing reached £18.3 billion in August 2026.
  • April-to-August borrowing totaled £77.3 billion, £8.1 billion above the OBR forecast.
  • The current budget deficit reached £51.9 billion, above the OBR's £47.1 billion projection.

UK public sector net borrowing, excluding public sector banks, reached £18.3 billion in August 2026, exceeding the £15.5 billion market forecast and marking the second-highest August total on record in nominal terms. Borrowing from April through August totaled £77.3 billion, £8.1 billion above the Office for Budget Responsibility's projection, after upward revisions to the preceding four months. Strong tax receipts were offset by higher spending on goods and services and inflation-linked social security benefits, leaving the current budget deficit at £51.9 billion against an OBR forecast of £47.1 billion. The figures add pressure on Finance Minister John Healey before next month's budget, as the government seeks to balance the current budget by fiscal 2029/30 while bond-market volatility has raised the cost of government borrowing.

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