UK public borrowing overshoots forecasts in August

According to the report from the Office for National Statistics, public sector net borrowing (excluding public sector banks, PSNB ex) was estimated to have been £20.5 billion in August 2021; this was the second-highest August borrowing since monthly records began in 1993, but £5.5 billion less than in August 2020. Economists had forecast borrowing of 15.6 billion pounds for August.

Central government receipts in August 2021 were estimated to have been £61.2 billion, £5.3 billion more than in August 2020, while central government bodies spent £79.6 billion in August 2021, £1.0 billion less than in August 2020.

Public sector net borrowing (PSNB ex) was estimated to have been £93.8 billion in the financial year-to-August 2021; this was the second highest financial year-to-August borrowing since monthly records began in 1993, £88.9 billion less than in the same period last year.

Public sector net borrowing (PSNB ex) was estimated to have been £325.1 billion in the financial year ending March 2021, an increase of £27.1 billion compared with our previous estimate; largely as a result of recording, for the first time, expected expenditure of £20.9 billion on calls under the government loan guarantee schemes.

Public sector net debt (excluding public sector banks, PSND ex) was £2,202.9 billion at the end of August 2021 or around 97.6% of GDP, the highest ratio since the 98.3% recorded in March 1963.