Public sector net borrowing (excluding public sector banks) in the UK rose to £17.7 billion in May 2025, slightly above £17.0 billion a year earlier and exceeding market expectations of £17.1 billion. Total public sector spending increased by £6.4 billion from a year ago, driven by higher spending on public services and benefits, partially offset by a £0.7 billion reduction in debt interest compared with May 2024. Meanwhile, total receipts grew by £5.7 billion, as the rise in central government tax receipts was supported by a £1.8 billion increase in national insurance contributions, partly due to the higher employer contribution rate introduced in April 2025.
