Official ONS figures show public sector net borrowing dropped £7.9 billion year on year in June 2026, coming in well below market expectations.
The UK government borrowed £16.0 billion in June 2026, down 33.1 per cent compared with £23.9 billion in June 2025, according to figures published by the Office for National Statistics. The figures show borrowing also came in below market expectations of around £18 billion — a gap of approximately £2 billion.
The drop follows a notably difficult May 2026, when provisional borrowing hit £23.3 billion — a figure reported at the time as markedly above Office for Budget Responsibility forecasts. June’s numbers offer a sharper contrast: a single-month swing of £7.9 billion in the right direction, though ONS cautions that all figures are provisional and subject to revision.
Public sector net debt stood at roughly £2,989.9 billion at the end of June 2026 — close to 99 to 100 per cent of GDP, a level not seen since the early 1960s. So while the monthly borrowing picture has improved, the underlying debt load remains near historic highs and continues to constrain what government can spend.
For Kent households and businesses, the effects are indirect but real. Lower-than-expected borrowing reduces immediate pressure for emergency tax rises or abrupt spending cuts — but with debt close to £3 trillion, central government grants to local authorities remain under long-term strain. Bodies such as Kent County Council, Medway Council, Canterbury City Council and Thanet District Council all rely on funding settlements shaped in part by the national fiscal position, affecting local roads, social care and public health budgets. Mortgage rates and business lending costs in Kent are also influenced by the borrowing and debt picture, as it feeds into interest rate expectations and investor confidence.
Broader context from earlier in the financial year suggests gradual improvement. Financial year-to-February 2026 borrowing ran at £125.9 billion, 8.7 per cent less than the same period a year before, and the current budget deficit for April to February 2026 came in at £62.1 billion — around 21 per cent lower year on year. But February 2026 borrowing alone was £14.3 billion, £2.2 billion higher than February 2025, a reminder that the monthly trend can move in either direction.
ONS publishes the public sector finances bulletin jointly with HM Treasury each month. All figures cited here are provisional.
Source: @ONS