UK government borrowing in the financial year to February 2025 was £132.2 billion — £14.7 billion more than at the same point in the last financial year and the third highest financial year-to-February borrowing since monthly records began.
That’s according to the UK’s Office for National Statistics (ONS).
The UK’s Institute for Fiscal Studies (IFS) warned that UK government borrowing for the whole year could come in at £151 billion, £23 billion more than forecast by the Office for Budget Responsibility (OBR) in October 2024.
“That forecast itself included a big upward revision to borrowing, largely reflecting much higher spending than anticipated in March 2024, before the General Election, when borrowing this year was forecast to be just £87 billion,” said the IFS.
“So borrowing this year could be £63 billion higher than was forecast a year ago.”
The ONS said UK government borrowing was £10.7 billion in February 2025 alone — £0.1 billion more than in February 2024 and the fourth highest February borrowing since monthly records began.
“Borrowing in the FY to February 2025 was £20.4 billion more than the £111.8 billion forecast by the Office for Budget Responsibility (OBR) in October 2024,” said the ONS.
“Of this, central government and local government borrowing were £13.6 billion and £5.4 billion, respectively, above OBR forecast amounts.”
Isabel Stockton, Senior Research Economist at the UK’s Institute for Fiscal Studies (IFS) said: “Today’s data on government spending, borrowing and revenues underscore the challenges facing the Chancellor as we head into the week of the Spring Statement.
“The forecast will include costings for cuts and a tightening of eligibility for health-related benefits announced this week, although as we have seen from previous reforms the eventual impact will depend on the way individuals respond to the changes.
“There are risks here. But having boxed herself in with promises to meet her fiscal targets, not to raise taxes further and not to return to austerity for public services, easy or risk-free options for the Chancellor are in short supply.”