---
source: Office for National Statistics
url: https://www.ons.gov.uk/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026
document_type: html
date_retrieved: 2026-04-23
period: March 2026
parent_publication: Public sector finances, UK
indicators_covered: ["Public Sector Net Borrowing Ex Banks"]
---


## Table of contents

1. Main points
2. Financial year ending March 2026 indicators at a glance
3. Comparing our estimates with official forecasts
4. Borrowing in March 2026
5. Borrowing in the financial year ending March 2026
6. Expressing borrowing as a percentage of GDP
7. The public sector balance sheet
8. UK fiscal targets
9. Revisions
10. Data on public sector finances
11. Glossary
12. Data sources and quality
13. Related links
14. Cite this statistical bulletin

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- Borrowing – the difference between total public sector spending and income – was £12.6 billion in March 2026; this was £1.4 billion less than in March 2025 and the lowest March borrowing since 2022 (not adjusted for inflation).
- Borrowing in the financial year ending (FYE) March 2026 was initially estimated at £132.0 billion; this was £19.8 billion (13.1%) less than in the FYE March 2025, and £0.7 billion less than the £132.7 billion forecast by the Office for Budget Responsibility (OBR).
- Borrowing in the FYE March 2026 was initially estimated at 4.3% of gross domestic product (GDP); this was 0.9 percentage points less than in the FYE March 2025 and the lowest value since the FYE March 2020, when it was 2.6% of GDP.
- The current budget deficit – borrowing to fund day-to-day public sector activities – was £50.9 billion in the FYE March 2026; this was £25.2 billion (33.1%) less than in the FYE March 2025.
- The current budget deficit in the FYE March 2026 was initially estimated at 1.7% of GDP; this was 0.9 percentage points lower than in the FYE March 2025 and it was the lowest value since the FYE March 2020, when it was 0.7% of GDP.
- Public sector net debt excluding public sector banks – a measure of the amount of money owed to the UK private sector and overseas less any liquid assets held – was provisionally estimated at 93.8% of GDP at the end of March 2026; this was 0.6 percentage points more than in March 2025 and remains at levels last seen in the early 1960s.
- Public sector net financial liabilities excluding public sector banks – which considers a wider range of financial assets and liabilities than net debt – were provisionally estimated at 83.3% of GDP at the end of March 2026; this was 2.3 percentage points more than in March 2025.
- Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail Ltd) – the additional cash needed to be raised from the financial markets to finance activities – was £28.0 billion in March 2026; this brought the total net cash requirement in the FYE March 2026 to £135.9 billion, which was £44.6 billion (24.7%) less than in the FYE March 2025.

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This release presents the first estimates of UK public sector finances for the financial year ending (FYE) March 2026. These are not final figures, and they will be revised over the coming months as we replace our initial estimates with provisional estimates and then final outturn data.

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The Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the UK government. The latest forecasts were published by OBR in its Economic and fiscal outlook – March 2026 report on 3 March 2026. This section compares our initial estimates with the corresponding forecasts published by OBR.

| Fiscal Aggregate | ONS estimate | OBR forecast | Difference |
|---|---|---|---|
| Net borrowing £ billion | 132.0 | 132.7 | -0.7 |
| Net borrowing % GDP | 4.3 | 4.3 | 0 |
| Current budget deficit £ billion | 50.9 | 49.2 | 1.7 |
| Current budget deficit % GDP | 1.7 | 1.6 | 0.1 |
| Public sector net debt £ billion [Note 3] | 2910.8 | 2922.3 | -11.5 |
| Public sector net debt % of GDP [Note 3] | 93.8 | 94.3 | -0.5 |
| Public sector net financial liabilities £ billion [Note 3] [Note 5] | 2582.2 | 2553.5 | 28.7 |
| Public sector net financial liabilities % of GDP [Note 3] [Note 5] | 83.3 | 82.4 | 0.9 |

#### Download this tableTable 1: Comparing our headline estimates with the corresponding Office for Budget Responsibility forecasts

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/86462a41.json)
[.csv](/download/table?format=csv&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/86462a41.json)

| Fiscal Aggregate | ONS estimate | OBR forecast | Difference |
|---|---|---|---|
| Value Added Tax | 211.6 | 211.2 | 0.4 |
| Income Tax | 354.1 | 353.2 | 0.9 |
| Corporation Tax [Note 3] | 98.7 | 98.8 | -0.1 |
| National Insurance Contributions [Note 4] | 204.5 | 204 | 0.5 |
| Other receipts not previously specified | 361.9 | 368 | -6.1 |
| Public sector receipts | 1,230.80 | 1,235.30 | -4.5 |
| Public sector spending | 1,362.80 | 1,368.00 | -5.2 |
| Public sector net borrowing | 132 | 132.7 | -0.7 |
| Memo: Public sector current budget deficit | 50.9 | 49.2 | 1.7 |
| Memo: Public sector net investment | 81.2 | 83.6 | -2.4 |

#### Download this tableTable 2: Comparing the components of public sector net borrowing with the corresponding Office for Budget Responsibility forecasts

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/8babaa97.json)
[.csv](/download/table?format=csv&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/8babaa97.json)

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Initial estimates show that the public sector borrowed £12.6 billion in March 2026, this was £1.4 billion less than in March 2025.

### Figure 1: This month’s borrowing was the lowest March since 2022

#### Public sector net borrowing excluding public sector banks, £ billion, UK, March 2021 to March 2026

Created with Highcharts 5.0.7Monthly public sector net borrowing (PSNB ex)March public sector net borrowing (PSNB ex)Mar 2021Mar 2022Mar 2023Mar 2024Mar 2025Mar 2026-40-30-20-100102030£ billion

#### Source: Public sector finances from the Office for National Statistics

##### Notes:

1. Dataset identifier code: -J5II.
2. Figures exclude those banks classified to the public sector between October 2007 and May 2024.
3. Positive numbers indicate a deficit, while negative numbers indicate a surplus.
4. Each January we usually see a surplus because of the additional self-assessed income tax receipts.

#### Download this chartFigure 1: This month’s borrowing was the lowest March since 2022

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/e28e3f61)
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| Subsector | March 2026 (£ billion) | March 2025(£ billion) | Difference  (£ billion) | Difference   (%) |
|---|---|---|---|---|
| Central government net borrowing | 12.4 | 13.8 | -1.3 | -9.8 |
| Local government net borrowing | 0.4 | -0.4 | 0.8 | - |
| Total public corporations net borrowing | -0.3 | 0.6 | -0.9 | -142.3 |
| Of which: non-financial public corporations | -0.9 | -0.8 | -0.1 | -15.1 |
| Of which: funded public sector pensions | -0.2 | -0.1 | -0.1 | -37.5 |
| Of which: Bank of England | 0.8 | 1.5 | -0.7 | -45.3 |
| Public sector net borrowing | 12.6 | 14.0 | -1.4 | -9.8 |
| Memo item: Public sector current budget deficit | -5.8 | -2.8 | -3.0 | -107.7 |
| Memo item: Central government net cast requirement [Note 2] | 28.0 | 21.0 | 7.0 | 33.1 |

#### Download this tableTable 3: Public sector net borrowing monthly summary

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/9d259c65.json)
[.csv](/download/table?format=csv&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/9d259c65.json)

Our Public sector finances borrowing by subsector: Appendix R dataset provides further detail on data presented in Table 3 and includes the option to select other time periods.

### Central government borrowing

Central government forms the largest part of the public sector and includes government departments such as:

- HM Revenue and Customs
- the Department of Health and Social Care
- the Department for Work and Pensions
- the Department for Education
- the Ministry of Defence
- other government agencies

The relationship between central government's receipts and expenditure is an important determinant of public sector net borrowing. Of the £12.6 billion that the public sector borrowed in March 2026, central government borrowed £12.4 billion – the borrowing and surpluses of the other subsectors largely offset each other.

### Central government receipts

Central government's receipts were £102.0 billion in March 2026, which was £5.4 billion (5.6%) more than in March 2025. Of this £5.4 billion increase in income:

- central government tax receipts increased by £1.7 billion to £74.0 billion; this included increases of £1.4 billion in Income Tax receipts (including PAYE and self-assessed Income Tax), £0.7 billion in Corporation Tax receipts, and £0.3 billion in Value Added Tax (VAT) receipts
- compulsory social contributions increased by £3.5 billion to £21.6 billion, as changes to the rate of National Insurance contributions paid by employers came into effect on 6 April 2025

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

!

In recent months, tax receipts recorded on an accrued basis are subject to some uncertainty. This is because many taxes, such as VAT, PAYE, and Corporation Tax, contain some forecast cash receipts data. These data are liable to revision when actual cash receipts data are received.

The forecasts underlying current HM Revenue and Customs tax estimates reflect the expectations published in the Economic and fiscal outlook – March 2026 report from the Office for Budget Responsibility (OBR).

### Central government current expenditure

Central government spending data for March 2026 are provisional. There is uncertainty around these estimates until more detailed departmental information becomes available over time.

Central government's current expenditure - spending to fund its day-to-day activities - was provisionally estimated as £91.6 billion in March 2026, which was £2.9 billion (3.3%) more than in March 2025. Of this £2.9 billion increase in spending:

- central government departmental spending on goods and services increased by £2.9 billion to £41.3 billion, as pay rises and inflation increased running costs
- net social benefits paid by central government increased by £0.7 billion to £26.9 billion; this was largely caused by inflation-linked increases in many benefits and earnings-linked increases to state pension payments
- payments to support the day-to-day running of local government increased by £0.5 billion to £14.1 billion; these intra-government transfers are both central government spending and a local government receipt, so they have no effect on overall public sector borrowing
- central government debt interest payable decreased by £1.3 billion to £3.2 billion, with movements in the Retail Prices Index (RPI) adding volatility to the monthly debt interest costs

### Central government debt interest costs

Borrowing is largely financed by the issuance of central government gilts by the Debt Management Office, on which interest is paid to investors.

Central government debt interest payable in March 2026 was £3.2 billion, this was £1.3 billion less than in March 2025.

The interest payable on index-linked gilts rises and falls with the RPI, adding volatility to central government debt interest costs. This additional RPI inflation-linked component of interest is described as "capital uplift" and affects the value of the gilt principal.

In March 2026, the capital uplift reduced the total central government interest payable by £3.3 billion. This largely reflects the 0.5% decrease in the RPI between December 2025 and January 2026.

Capital uplift is accrued throughout the life of each index-linked gilt but is paid to gilt holders as interest at redemption. Accrued capital uplift is shown as the light blue portion of each stacked bar in Figure 2.

### Figure 2: Recent movements in the Retail Prices Index reduced the overall central government debt interest payable in March 2026 by £3.3 billion

#### Central government debt interest payable, £ billion, UK, March 2024 to March 2026

Created with Highcharts 5.0.7Total interest payableCapital uplift on index-linked gilts [Note 1]Other components of interest payableMar 2024Sept 2024Mar 2025Sept 2025Mar 2026-505101520£ billion

#### Source: Public sector finances from the Office for National Statistics

##### Notes:

1. Net of redemption proceeds.
2. Dataset identifier codes: NMFX, JNYY and JNYX.

#### Download this chartFigure 2: Recent movements in the Retail Prices Index reduced the overall central government debt interest payable in March 2026 by £3.3 billion

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/224d32d7)
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### Central government net investment

Central government net investment was £19.2 billion in March 2026, this was £1.0 billion more than in March 2025. This increase was largely because of a £1.1 billion increase in gross capital formation, which tends to peak in March of each year.

### Comparing our March 2026 borrowing estimates with official forecasts

The Office for Budget Responsibility (OBR) is responsible for the production of official forecasts for the UK government. These forecasts are usually produced twice a year, in spring and autumn.

The OBR published its Economic and fiscal outlook – March 2026 report on 3 March 2026. However, this comparison uses the Economic and fiscal outlook – November 2025 report because there are no monthly profiles published for the current financial year to accompany the March 2026 forecasts.

In March 2026, borrowing was £2.1 billion higher than forecast, largely because local government borrowing was higher than anticipated.

| March 2026 | ONS estimate | OBR forecast | Difference[Note 3] |
|---|---|---|---|
| Central government total current receipts | 102.0 | 104.5 | -2.5 |
| Central government total expenditure | 114.4 | 115.9 | -1.5 |
| Central government net borrowing | 12.4 | 11.5 | 1.0 |
| Local government net borrowing | 0.4 | -1.8 | 2.2 |
| Total public corporations net borrowing [Note 4] | -0.3 | 0.8 | -1.0 |
| Public sector net borrowing | 12.6 | 10.5 | 2.1 |
| Memo item: Public sector current budget deficit | -5.8 | -6.6 | 0.8 |

#### Download this tableTable 4: Comparing our estimates with the corresponding Office for Budget Responsibility forecasts

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/86f68387.json)
[.csv](/download/table?format=csv&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/86f68387.json)

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Borrowing in the financial year ending (FYE) March 2026 was initially estimated at £132.0 billion. This was £19.8 billion (13.1%) less than in the FYE March 2025, and £0.7 billion less than the £132.7 billion forecast by the Office for Budget Responsibility (OBR), published in March 2026.

### Figure 3: Borrowing in the financial year ending March 2026 was lower than in the financial year ending 2025 and it was less than the Office for Budget Responsibility forecast

#### Cumulative public sector net borrowing excluding public sector banks, £ billion, UK, financial year ending (FYE) March 2025 and FYE March 2026

Created with Highcharts 5.0.7Borrowing – Cumulative 2024 to 2025Borrowing – Cumulative 2025 to 2026OBR – Forecast 2025 to 2026 (November 2025)OBR – Forecast 2025 to 2026 (March 2026)Apr May JuneJulyAug SeptOct Nov Dec Jan Feb Mar 050100150200£ billion

#### Source:  Public sector finances from the Office for National Statistics and the Office for Budget Responsibility

##### Notes:

1. Dataset identifier code: -J5II.
2. This table uses the Economic and fiscal outlook – November 2025 and the corresponding monthly profiles published in March 2026 and the Economic and fiscal outlook – March 2026.

#### Download this chartFigure 3: Borrowing in the financial year ending March 2026 was lower than in the financial year ending 2025 and it was less than the Office for Budget Responsibility forecast

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/004abf20)
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| Subsector | Financial year to March 2026 (£ billion) | Financial year to March 2025 (£ billion) | Difference  (£ billion) | Difference   (%) |
|---|---|---|---|---|
| Central government net borrowing | 124.8 | 154.1 | -29.3 | -19.0 |
| Local government net borrowing | 16.3 | 16.3 | 0.0 | 0.1 |
| Total public corporations net borrowing | -9.1 | -18.6 | 9.5 | 50.9 |
| Of which: non-financial public corporations | -2.8 | -2.4 | -0.5 | -19.4 |
| Of which: funded public sector pensions | -2.4 | -1.7 | -0.7 | -39.4 |
| Of which: Bank of England | -3.9 | -14.5 | 10.6 | 73.1 |
| Public sector net borrowing | 132.0 | 151.9 | -19.8 | -13.1 |
| Memo item: Public sector current budget deficit | 50.9 | 76.1 | -25.2 | -33.1 |
| Memo item: Central government net cast requirement [Note 2] | 135.9 | 180.5 | -44.6 | -24.7 |

#### Download this tableTable 5: Public sector net borrowing financial year summary

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/36f1cd7f.json)
[.csv](/download/table?format=csv&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/36f1cd7f.json)

Our Public sector finances borrowing by subsector: Appendix R dataset provides further detail on data presented in Table 5 and includes the option to select other time periods.

### Central government net borrowing

Central government forms the largest part of the public sector, and the relationship between its receipts and expenditure is an important determinant of public sector net borrowing. Of the £132.0 billion borrowed by the public sector in the FYE March 2026, central government borrowed £124.8 billion.

### Central government receipts

Central government's receipts were £1,121.5 billion in the FYE March 2026, which was £87.2 billion (8.4%) more than in the same 12-month period a year ago. Of this £87.2 billion increase in income:

- central government tax receipts increased by £54.7 billion to £845.4 billion; this included increases of £34.6 billion in Income Tax, £8.8 billion in Value Added Tax (VAT), and £5.4 billion in Corporation Tax receipts
- compulsory social contributions increased by £33.0 billion to £206.8 billion, as changes to the rate of National Insurance contributions paid by employers came into effect on 6 April 2025

A detailed breakdown of central government income is presented in our Public sector current receipts: Appendix D dataset.

### Central government current expenditure

Central government's current expenditure - spending to fund its day-to-day activities - was provisionally estimated at £1,095.5 billion in the FYE March 2026, which was £65.6 billion (6.4%) more than in the same 12-month period a year ago. Of this £65.6 billion increase in spending:

- central government departmental spending on goods and services increased by £27.9 billion to £461.6 billion, as pay rises and inflation increased running costs
- net social benefits paid by central government increased by £20.7 billion to £327.3 billion, largely caused by inflation-linked increases in many benefits (including Universal Credit), and earnings-linked increases to state pension payments
- interest payable on central government debt increased by £12.2 billion to £97.6 billion, largely because the interest payable on index-linked gilts rises and falls with the Retail Prices Index
- payments to support the day-to-day running of local government increased by £3.1 billion to £148.2 billion; these intra-government transfers have no impact on overall public sector borrowing

### Central government net investment

Central government net investment was £107.3 billion in the financial year (FY) to March 2026, which was £10.0 billion less than in the FY to March 2025.

Over this period, central government made payments totalling £16.7 billion to the Bank of England (BoE) Asset Purchase Facility Fund, which was £19.7 billion less in the FY to March 2025. These payments are recorded as both central government net investment expenditure and BoE receipts, so have no effect on overall public sector borrowing. This reduction in spending is partially offset by increases in other capital transfers paid by central government of £5.1 billion and an increase in gross capital formation of £6.2 billion, along with other smaller changes.

### Local government borrowing

Initial estimates show that local government net borrowing was £16.3 billion in the FYE March 2026, this was equal to that in the FYE March 2025.

Local government data for the FYE March 2026 are provisional estimates for the UK. They are largely based on budget data for England, Scotland, and Wales, with estimates included for Northern Ireland. Further information on the quality of our local government data is discussed in Section 12: Data sources and quality.

### Public corporations' borrowing

Initial estimates show that overall, public corporations had a surplus of £2.8 billion in the FYE March 2026; this was a £0.5 billion larger surplus than in the FYE March 2025.

Borrowing figures for public corporations in the current financial year are highly provisional and are primarily based on the OBR's Economic and fiscal outlook – November 2025 report.

Estimates for the FYE March 2025 use the Economic and fiscal outlook – October 2024 report, supplemented by in-year data for train operating companies, the Housing Revenue Account, and surveyed public corporations.

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Initial estimates show the public sector borrowed £132.0 billion in the financial year ending (FYE) March 2026. This is the sixth-highest amount borrowed in any financial year since records began in the FYE March 1947. However, these estimates have not been adjusted for inflation.

Expressing borrowing as a ratio of gross domestic product (GDP) – the value of everything produced in the UK economy in a 12-month period – gives an estimate of its affordability and is recommended for comparison of the UK's fiscal position over time.

In the FYE March 2026, borrowing was provisionally estimated at 4.3% of GDP. This was 0.9 percentage points less than in the FYE March 2025 and is the thirty-sixth highest (or ninety-first lowest) borrowing ratio in any financial year since records began in the FYE March 1901.

This initial estimate was equal to that forecast by the Office for Budget Responsibility (OBR) in March 2026.

### Figure 4: Financial year borrowing has been stable at between 4% and 5% of GDP since the end of the coronavirus (COVID-19) pandemic period

#### Public sector net borrowing as a percentage of gross domestic product (GDP), UK, financial year ending (FYE) March 1901 to FYE March 2026

Created with Highcharts 5.0.7World War OneWorld War TwoFinancial crisisCoronavirus(COVID-19)pandemicFYE 1901FYE 1913FYE 1925FYE 1937FYE 1949FYE 1961FYE 1973FYE 1985FYE 1997FYE 2009FYE 2021-10-5051015202530Percentage of GDP

#### Source: Public sector finances from the Office for National Statistics and Office for Budget Responsibility

##### Notes:

1. Dataset identifier code: -J5IJ.
2. Figures exclude those banks classified to the public sector between October 2007 and May 2024.
3. This chart uses historical data published in the Public finances databank 2025 to 2026.

#### Download this chartFigure 4: Financial year borrowing has been stable at between 4% and 5% of GDP since the end of the coronavirus (COVID-19) pandemic period

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/d1031136)
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!

Estimates of borrowing (along with current budget deficit and net investment) expressed as a percentage of gross domestic product (GDP) for the financial year ending (FYE) March 2026 should be treated as highly provisional; they are likely to be revised in future publications. We are yet to publish an estimate of GDP for Quarter 1 (Jan to Mar) 2026. In line with previous years, we have used an estimate based on the latest Office for Budget Responsibility (OBR) forecast to complete our presentations.

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The public sector balance sheet describes its financial position at a point in time. It shows its liabilities and assets. There are several measures of the public sector balance sheet that we discuss in our What the UK government owns and what it owes blog.

| Classification of assets and liabilities [Note 1] [Note 2] [Note 10] | Central government gilts | General government gross debt | PSND excluding both BoE and public sector banks (PSND ex BoE) | PSND excluding public sector banks (PSND ex) | PSNFL excluding public sector banks | Public sector net worth excluding public sector banks |
|---|---|---|---|---|---|---|
| Total [Note 3] | 2,641.7 | 3,101.6 | 2,785.9 | 2,910.8 | 2,582.2 | -695.7 |
| Assets: Non-financial [Note 4] |  |  |  |  |  | 1,886.5 |
| Assets: Illiquid financial [Note 5] |  |  |  |  | 1,062.2 | 1,062.2 |
| Assets: Liquid financial [Note 5] |  |  | 285.0 | 511.1 | 511.1 | 511.1 |
| Liabilities: Currency and deposits |  | 277.1 | 282.1 | 1,075.4 | 1,075.4 | 1,075.4 |
| Liabilities: Gilts [Note 6] | 2,641.7 | 2,641.2 | 2,601.8 | 2,140.8 | 2,140.8 | 2,140.8 |
| Liabilities: Other debt securities and loans |  | 183.3 | 187.0 | 205.7 | 205.7 | 205.7 |
| Liabilities: Other financial liabilities [Note 7] |  |  |  |  | 733.6 | 733.6 |

#### Download this tableTable 6: The public sector balance sheet

[.xls](/download/table?format=xlsx&uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/75be6052.json)
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As a part of the quantitative easing activities of the Bank of England (BoE), it purchased central government gilts from the market through the Asset Purchase Facility (APF) fund. These gilt holdings consolidate within the public sector balance sheet, leaving only the difference between their purchase price and their redemption value.

Subsequent movements in the market value of these consolidated gilt holdings have no effect on the public sector balance sheet.

The reserves created by the BoE, and subsequently loaned to the APF to purchase these gilts, remain on the public sector balance sheet as a liability in currency and deposits until the loan is repaid.

Our Public sector balance sheet tables: Appendix N dataset presents a detailed reconciliation between the balance sheet measures summarised in Table 6.

### Public sector net debt

Public sector net debt is a widely quoted balance sheet measure. Expressing net debt as a ratio of gross domestic product (GDP) gives an estimate of its affordability and provides a more consistent measure for comparison of the UK's fiscal position over time.

The net debt-to-GDP ratio at the end of March 2026 was provisionally estimated at 93.8%; this was 0.6 percentage points more than in March 2025 and 0.5 percentage points less than the 94.3 % forecast by the Office for Budget Responsibility (OBR) in March 2026.

Our How the ONS estimates UK debt to GDP figures blog explains why our estimates of the debt to GDP ratio are susceptible to revision.

### Figure 5: Net debt as a percentage of GDP remains at levels last seen in the early 1960s

#### Public sector net debt as a percentage of gross domestic product (GDP), UK, financial year ending (FYE) March 1901 to March 2026

Created with Highcharts 5.0.7World War OneWorld War TwoFinancial crisisCoronavirus(COVID-19)pandemicMar 1901Mar 1913Mar 1925Mar 1937Mar 1949Mar 1961Mar 1973Mar 1985Mar 1997Mar 2009Mar 2021050100150200250300Percentage of GDP

#### Source: Public sector finances from the Office for National Statistics and Office for Budget Responsibility

##### Notes:

1. Dataset identifier code: HF6X.
2. Figures exclude those banks classified to the public sector between October 2007 and May 2024.
3. This chart uses historical data published in the Public finances databank 2025 to 2026.

#### Download this chartFigure 5: Net debt as a percentage of GDP remains at levels last seen in the early 1960s

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/658320ec)
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### Public sector net financial liabilities

Public sector net financial liabilities (PSNFL) has a broader scope than debt (PSND). It adds further financial assets and financial liabilities to those recorded in PSND.

PSNFL was 83.3% of GDP at the end of March 2026, which was 2.3 percentage points more than at the end of March 2025 and 0.9 percentage points more than the 82.4 % forecast by the OBR in March 2026.

These extra financial assets are currently valued at more than the extra financial liabilities. This means that at 83.3% of GDP, PSNFL was 10.5 percentage points of GDP less than PSND at the end of March 2026.

We explain the financial assets and liabilities captured in PSNFL in our Public sector net financial liabilities (PSNFL) methodology.

Additionally, we published a blog explaining the PSNFL measure, because it has been selected by the UK government as the reference for a balance sheet fiscal rule.

### Figure 6: The upward trend in public sector net financial liabilities is largely because of increases in net debt

#### Public sector net financial liabilities, £ billion, UK, month end March 2005 to March 2026

Created with Highcharts 5.0.7Other financial liabilitiesPSND exIlliquid financial assets PSNFL exMar 2005Mar 2008Mar 2011Mar 2014Mar 2017Mar 2020Mar 2023Mar 2026-2,000-1,00001,0002,0003,0004,000£ billion

#### Source: Public sector finances from Office for National Statistics

##### Notes:

1. Dataset identifier codes: KSE6, JMET, JMEU and CPNF.
2. Figures exclude those banks classified to the public sector between October 2007 and May 2024.
3. PSND ex – public sector net debt excluding public sector banks.
4. PSNFL ex – public sector net financial liabilities excluding public sector banks.

#### Download this chartFigure 6: The upward trend in public sector net financial liabilities is largely because of increases in net debt

[Image](/chartimage?uri=/economy/governmentpublicsectorandtaxes/publicsectorfinance/bulletins/publicsectorfinances/march2026/64abd793)
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The additional financial assets and liabilities included in PSNFL that fall outside of the PSND boundary are not updated monthly. Instead, they are updated quarterly, or when data become available. These data were last updated on 20 March 2026 and will next be updated on 19 June 2026.

A more detailed presentation of the public sector balance sheet is available in our Public sector net worth: Appendix O dataset, released on 20 March 2026.

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The UK government has legislated for fiscal targets to constrain its management of the public finances. The Autumn Budget 2024 announced that from January 2025, these fiscal targets focus on the public sector current budget deficit and public sector net financial liabilities.

The targets are that by the end of the financial year ending (FYE) 2030, the current budget should be brought into surplus, and that public sector financial liabilities should be falling relative to the size of the economy (or gross domestic product – GDP) compared with the previous year.

Our latest figures show that:

- the public sector current budget deficit was initially estimated as £50.9 billion in the FYE March 2026; this was £25.2 billion less than in the FYE March 2025
- public sector net financial liabilities were initially estimated at 83.3% of GDP at the end of March 2026; this was 2.3 percentage points more than at the end of March 2025

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The data for the latest months of every release contain a degree of forecasts. These are then replaced by improved estimates, as further data are made available, and finally by outturn data.

!

Our initial estimates of borrowing for the most recent months are prone to revisions in later months. This is because some tax receipts contain a degree of Office for Budget Responsibility-based forecast data. Both central government and local government spending profiles are provisional.

| Subsector | Financial year to February 2026(£ billion) | Change since March 2026 publication (£ billion)[Note 3] | Financial year ending March 2025(£ billion) | Change since March 2026 publication(£ billion)[Note 3] |
|---|---|---|---|---|
| Central government net borrowing | 112.4 | -5.9 | 154.1 | 0.1 |
| Local government net borrowing | 15.9 | -0.2 | 16.3 | 0.0 |
| Total public corporations net borrowing | -8.9 | -0.4 | -18.6 | 0.0 |
| Of which: non-financial public corporations | -1.9 | -0.4 | -2.4 | 0.0 |
| Of which: funded public sector pensions | -2.2 | 0.0 | -1.7 | 0.0 |
| Of which: Bank of England | -4.7 | 0.0 | -14.5 | 0.0 |
| Public sector net borrowing | 119.4 | -6.4 | 151.9 | 0.1 |
| Memo item: Public sector current budget deficit | 56.7 | -5.5 | 76.1 | 0.1 |

#### Download this tableTable 7: Revisions to public sector net borrowing by subsector

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Our Public sector finance revisions analysis: Appendix P dataset records monthly borrowing data, as at first and at subsequent publications, graphically illustrating any potential bias to our early estimates.

### Revisions to public sector net borrowing in the financial year to February 2026

Since publishing our Public sector finances, UK: February 2026 bulletin, we have reduced our estimate of public sector net borrowing (PSNB ex) in the first 11 months of the financial year by £6.4 billion to £119.4 billion. This change is because of regular updates to our central government data.

We have increased our previous estimate of tax receipts by £2.0 billion, in part because of cash receipts replacing previous forecasts, and in part because HM Revenue and Customs (HMRC) updated its forecasts to include those published by the Office for Budget Responsibility (OBR) in March 2026. Further, we have increased our previous estimate of National Insurance contributions by £0.7 billion to include the latest cash receipts data.

We have reduced our previous estimate of spending by £3.2 billion. This was largely because of a £2.2 billion reduction in our previous estimate of departmental spending on goods and services and a £1.0 billion reduction in our previous estimate of gross capital formation.

### Revisions to public sector net debt at the end of February 2026

We have increased our estimate of public sector net debt at the end of February 2026 by £2.4 billion to £2,881.9 billion. Of this increase, £2.1 billion is because of updates to our estimate of the Bank of England's (BoE) contribution to debt. Some of these data are published one month in arrears, so large revisions are not uncommon.

The remaining £0.3 billion increase to our previous estimate of public sector net debt is because of updates to our central government data.

### Revisions to GDP

This month, we have updated our previous estimates of nominal gross domestic product (GDP) with those published in our GDP quarterly national accounts, UK: October to December 2025 bulletin, published on 31 March 2026. This update had a negligible effect on our headline statistics.

[Back to table of contents](#toc)

Public sector finances tables 1 to 10: Appendix A Dataset | Released 23 April 2026 The data underlying the public sector finances statistical bulletin are presented in the tables PSA 1 to 10.

Public sector current receipts: Appendix D Dataset | Released 23 April 2026 A breakdown of UK public sector income by latest month, financial year-to-date and full financial year, with comparisons with the same period in the previous financial year.

Public sector finances summary tables: Appendix M Dataset | Released 23 April 2026 The latest public sector net borrowing by subsector and a summary of central government receipts and expenditure data.

Public sector balance sheet tables: Appendix N Dataset | Released 23 April 2026 A reconciliation of the latest public sector balance sheet measures.

Public sector finances borrowing by subsector: Appendix R Dataset | Released 23 April 2026 Public sector finances analytical tables (PSAT) showing transactions related to borrowing by subsector. Total Managed Expenditure (TME) is also provided.

International Monetary Fund's Government Finance Statistics framework in the public sector finances: Appendix E Dataset | Released 20 March 2026 Presents the balance sheet, statement of operations, and statement of other economic flows for the public sector, compliant with the Government Finance Statistics Manual 2014: GFSM 2014 presentation. Updated quarterly, depending on the availability of data.

Public sector net worth: Appendix O Dataset | Released 20 March 2026 Presents the balance sheet for the public sector, consistent with the 2010 European system of national and regional accounts (ESA 2010), and Eurostat's Manual on Government Deficit and Debt (MGDD). Updated quarterly, depending on the availability of data.

[Back to table of contents](#toc)

### Public sector

The UK public sector comprises of six subsectors: central government, local government, public nonfinancial corporations, public sector-funded pensions, the Bank of England, and public financial corporations.

Figures in this release exclude public sector banks, following the reclassification of NatWest Group to the private sector in June 2024.

### Public sector net borrowing

Public sector net borrowing (often referred to as the deficit) is the difference between total expenditure and receipts. Positive numbers indicate a deficit, while negative numbers indicate a surplus.

### Public sector current budget deficit

Public sector current budget deficit is the difference between current expenditure and receipts, after accounting for depreciation. It measures the borrowing needed to fund day-to-day activities and is the reference statistic for a UK government fiscal rule. Positive numbers indicate a deficit, while negative numbers indicate a surplus.

Both current budget deficit and borrowing are recorded on an accrual basis, that is income when earned and spending when incurred, rather than when cash is paid.

### Central government net cash requirement

The central government net cash requirement is the cash the government must raise from financial markets to finance its activities. It reflects the timing of payments and receipts rather than when liabilities arise.

### Public sector net debt

Public sector net debt (often referred to as the national debt) measures the public sector's liabilities to the private sector and overseas, net of its liquid financial assets.

### Public sector net financial liabilities

Public sector net financial liabilities (often referred to as PSNFL or net financial debt) is a broader balance sheet measure than net debt, capturing all financial assets and liabilities recognised in the national accounts.

PSNFL is the reference statistic for a UK government fiscal rule.

### Public sector net worth

Adding non‑financial assets to PSNFL results in public sector net worth, the widest measure of the public sector balance sheet.

[Back to table of contents](#toc)

### About the statistics

Economic statistics classifications and developments in public sector finances: February 2026  Article | Released 23 April 2026 Includes the latest economic statistics classification updates and information on future developments to the public sector finance statistics.

Pensions in the public sector finances: a methodological guide Methodology | Released 4 December 2024 Explains the methods and data sources we use to record pensions in fiscal statistics.

Monthly statistics on the public sector finances: a methodological guide Methodology | Released 4 October 2023 Provides comprehensive contextual and methodological information on the monthly Public sector finances statistical bulletin.

Public sector finances quality and methodology information (QMI) Methodology | Released 4 October 2023 Quality and Methodology Information for the UK public sector finances and government deficit and debt under the Maastricht Treaty, detailing the strengths and limitations of the data, methods used, and data uses and users.

Student loans in the public sector finances: a methodological guide Methodology | Released 22 February 2020 Explains the methods we will use to partition student loans into government expenditure and a financial transaction.

### About our data sources

Calculation of interest payable on government gilts Methodology | Released 18 July 2022 Explains the recording of interest payable to holders of UK government gilts in the UK public sector finances.

The use of gross domestic product (GDP) in public sector fiscal ratio statistics Methodology | Released 21 September 2016 Explains the methodology used for the presentation of GDP ratios in the UK PSF publication.

### Statistical designation

The Office for Statistics Regulation (OSR) independently reviewed the public sector net borrowing, cash requirement, and debt statistics in June 2017, concluding that they comply with the standards of trustworthiness, quality, and value in the Code of Practice for Statistics and should be labelled "accredited official statistics".

The public sector net financial liabilities and public sector net financial worth statistics are both official statistics. These measures were introduced after June 2017, so have not yet been reviewed by the OSR.

The public sector net worth statistics are labelled as "official statistics in development". They are based on information from public sector finance and data from our non-financial accounts.

### HM Revenue and Customs data quality review

On 8 October 2025, HM Revenue and Customs (HMRC) reported an under-estimation in its VAT cash receipts data for the period April to August 2025. HMRC implemented immediate improvements to quality assurance processes, including comparisons with independent data sources, working with HM Treasury and the Office for National Statistics (ONS). HMRC is carrying out a robust review across all receipts to consider the underlying issue and to identify actions to minimise the risk of similar incidents in future.

We are working with HM Treasury to support this process. The Office for Statistics Regulation will provide an independent perspective on HMRC's review to ensure compliance with the Code of Practice for Statistics.

We reported on progress with work to improve the quality of public sector finance statistics as part of the second quarterly update on the Economic Statistics Plan in our ONS strategic improvement update: April 2026.

### Local government data quality

Local government data for the financial year ending (FYE) March 2026 are provisional estimates for the UK. They are largely based on budget data for England, Scotland and Wales, and with estimates included for Northern Ireland.

For the FYE March 2025, estimates of the current expenditure of local authorities in England are based on published second release data, while capital expenditure and receipts are based on published final outturn data.

Estimates for the devolved administrations for the FYE March 2025 are based on published outturn data for Wales and Scotland, and final returned data for Northern Ireland.

In recent years, planned local government current and capital expenditure in local authority budgets have differed from the final outturn expenditure reported in the audited accounts; current expenditure has been systematically lower than what was reported at final outturn. Therefore, we may include adjustments to increase or decrease the amounts reported at the budget stage

For the FYE March 2026, these adjustments include:

- a £2.0 billion upward adjustment to England's current expenditure
- a £0.5 billion upward adjustment to England's capital expenditure
- a £2.4 billion upward adjustment to Scotland's current expenditure

To reflect the most recently available data for housing benefits, we have applied a further £3.0 billion downward adjustment to current expenditure in the FYE March 2026.

[Back to table of contents](#toc)

Economic statistics classifications and developments in public sector finances: February 2026  Article | Released 23 April 2026 Includes the latest economic statistics classification updates and information on future developments to the public sector finance statistics.

HMRC tax receipts and National Insurance contributions for the UK Bulletin | Updated 23 April 2026 Summary of HM Revenue and Customs' (HMRC) tax receipts, National Insurance contributions (NICs), and expenditure for the UK.

Economic and fiscal outlook – March 2026 Article | Released 3 March 2026 The latest set of economic forecasts published by the Office for Budget Responsibility (OBR).

Looking ahead – developments in public sector finance statistics: 2025 Article | Released 27 June 2025 What we see as areas for future development in public sector finance statistics.

Public sector net financial liabilities (PSNFL) Methodology | Last revised 30 October 2024 An explanation of the financial assets and liabilities captured in public sector net financial liabilities (PSNFL), how PSNFL compares with public sector net debt (PSND), and how it has changed over time.

Country and regional public sector finances, UK: financial year ending March 2023 Article | Released 7 June 2024 Public sector revenue, expenditure, and net fiscal balance on a country and regional basis. Next release: 26 May 2026

Effects of the economy on public sector net debt, UK: April 2024 Article | Released 10 May 2024 Examines the economic reasons behind the large increase in public sector net debt as a percentage of gross domestic product over the last two decades.

The calculation of interest payable on government gilts Methodology | Last revised 18 July 2022 Explains the recording of interest payable to holders of UK government gilts in the UK public sector finances.

[Back to table of contents](#toc)

Office for National Statistics (ONS), released 23 April 2026, ONS website, statistical bulletin, Public sector finances, UK: March 2026

[Back to table of contents](#toc)

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### Contact details for thisStatistical bulletin

			Public Sector Finance Delivery team

[public.sector.inquiries@ons.gov.uk](mailto:public.sector.inquiries@ons.gov.uk)

			Telephone: +44 1633 456402