UK government borrowing in the five months to August 2025 was £83.8 billion — £16.2 billion more than in the same five-month period of 2024 and the second-highest April to August borrowing since monthly records began in 1993, after that of 2020.

That’s according to the UK’s Office for National Statistics (ONS).

The ONS said public sector net debt excluding public sector banks was provisionally estimated at 96.4% of gross domestic product (GDP) at the end of August 2025. This was 0.5 percentage points more than at the end of August 2024 and remains at levels last seen in the early 1960s.

The ONS added that it has increased its estimate of the UK’s public sector net debt (PSND ex) at the end of July 2025 by £1.8 billion to £2.893 trillion.

“The current budget – borrowing to fund day-to-day public sector activities – was £13.6 billion in August 2025; this brings the total current budget deficit in the financial year to August 2025 to £62.0 billion, which is £13.8 billion more than in the same five-month period of 2024,” said the ONS.

The ONS said UK central government’s receipts were £433 billion in the financial year to August 2025, £25.5 billion more than in the same five-month period a year ago. However, it said central government’s current expenditure was provisionally estimated at £464.1 billion in the financial year to August 2025, £36.8 billion more than in the same five-month period a year ago.

UK government borrowing was £18 billion in August 2025 — £3.5 billion more than in August 2024 and the highest August borrowing for five years.

ONS chief economist Grant Fitzner said the figure was the highest August borrowing total since the height of the Covid pandemic, but added: “Although overall tax and national insurance receipts were noticeably up on last year, these increases were outstripped by higher spending on public services, benefits and debt interest.”

Kathleen Brooks, research director at XTB, said: “The highest recorded borrowing during this period was 2020. This suggests that the UK is borrowing at the same rates as during the Covid era, although, thankfully, the pandemic is behind us …

“This is going to lead to calls about the sustainability of public finances, and the need for tax rises at the upcoming Budget. However, many of the hard-working people that Kier Starmer and Rachel Reeves are pledging to protect will wonder why public spending can’t be cut, and they always have to pay more in an ever widening net of taxation.

“It could also lead to questions being asked about the size of the UK state, as well as the cost of public services vs. private.

“The pound has sunk on this data, and is testing support at $1.3500, it is the second worst performing currency in the G10 FX space today, and is lower by 0.33% vs. the USD. The UK’s bond market is extremely fragile, 10-year and 30-year yields rose sharply on Thursday, although global long end yields were higher, the UK was the weakest performer across Europe and the US.

“UK bond yields could rise further on this news, especially as the Bank of England is maintaining its ‘careful and gradual’ approach to loosening monetary policy.

“Although the BOE has reduced the amount of bonds that it is offloading from its balance sheet, especially long end bonds, they are still shrinking their balance sheet albeit at a slower pace. Thus, the BOE cannot be relied on to relieve pressure on the long end of the UK Gilt curve.”

Professor Joe Nellis, economic adviser at MHA, the accountancy and advisory firm. said: “The overshoot was driven by persistently high debt interest costs on inflation-linked gilts — 30-year gilts reached their highest in almost 30 years in August.

“The debt-inflation costs are now projected at over £110 billion in 2025-26. Higher borrowing is also the result of rising welfare spending and higher public sector pay settlements.

“As the economy continues to falter, without any consistent and sustained growth, increased government borrowing makes the Chancellor’s fiscal headroom even slimmer ahead of the Budget on 26th November. This simply cannot go on.

“A government cannot continue to spend beyond its means while espousing belief in ‘fiscal stability,’ without evoking the wrath of the financial markets. The Chancellor has some very difficult, but very important, decisions to make at the Budget if fiscal stability is to be secured.”