ONS figures show the UK’s public sector net financial liabilities rose by £154.3 billion year-on-year to reach £2,662.5 billion — 84.5 per cent of GDP — at the end of June 2026.
The UK’s public sector net financial liabilities excluding public sector banks stood at £2,662.5 billion at the end of June 2026, the Office for National Statistics confirmed in an official post. That figure — equivalent to 84.5 per cent of GDP — was £154.3 billion higher than at the same point in June 2025, the figures show.
PSNFL is a broader measure than the more widely reported public sector net debt. It captures a wider range of financial assets and liabilities, including loans and other financial instruments, and sits 10.4 percentage points of GDP below net debt as a result — because it accounts for financial assets held by the public sector, such as student loans. The Office for Budget Responsibility had forecast net financial liabilities at around 82.4 per cent of GDP for 2025–26, making the ONS provisional estimate of 84.5 per cent slightly above that projection.
The month-on-month picture offers a marginal shift: at end-May 2026, PSNFL was 84.7 per cent of GDP, compared with 84.5 per cent at end-June 2026 — a small percentage-point fall even as the cash total continued to rise. All June 2026 figures are provisional and may be revised.
The borrowing backdrop helps explain the trajectory. According to ONS, public sector net borrowing in May 2026 was around £16 billion.
For Kent households and businesses, the numbers don’t translate directly into local budgets — ONS doesn’t break PSNFL down by county. But the direction of travel matters. Kent County Council, NHS Kent and Medway Integrated Care Board, and district councils across the county all depend on central government funding settlements set against this national fiscal backdrop. Sustained increases in net financial liabilities, combined with record debt interest costs, can constrain future spending reviews and capital investment decisions. Higher borrowing costs can also feed through to mortgage rates and business finance conditions more broadly.
The public sector finances bulletin is produced jointly by ONS and HM Treasury and is updated monthly. The OBR forecasts that public sector net debt — currently projected at 94.3 per cent of GDP for 2025–26 — will peak later this decade before falling gradually, though that path depends on borrowing and interest costs remaining on track.
Source: @ONS