The United Kingdom recorded higher-than-expected government borrowing of 23.3 billion pounds last May, in light of the economic repercussions of the war in the Middle East.
The British Office for National Statistics confirmed, in a report published today, that net public sector borrowing – which is the difference between government spending and its revenues – was the second highest level ever recorded for the month of May, pointing out that borrowing numbers were 5.6 billion pounds higher than expectations.
Tom Davies, chief statistician at the office, stated that borrowing during the first two months of the fiscal year amounted to about 9 billion pounds more than the same period in 2025, noting the increase in spending on debt interest, public services, investment and social benefits during the past month compared to the same month last year, exceeding the increase recorded in tax revenues.
He explained that counting the first two months of the new fiscal year, total borrowing amounted to 46.3 billion pounds, an increase of 8.9 billion pounds over the previous year, and a difference of 7.7 billion pounds above the expectations of the Office for Budget Responsibility.
The Bank of England had left interest rates unchanged at 3.75 percent after predicting that inflation would approach 2 percent, but the rise in fuel prices as a result of the war in the Middle East pushed energy costs to rise, keeping the inflation rate at 2.8 percent last month.
The British Office for National Statistics confirmed, in a report published today, that net public sector borrowing – which is the difference between government spending and its revenues – was the second highest level ever recorded for the month of May, pointing out that borrowing numbers were 5.6 billion pounds higher than expectations.
Tom Davies, chief statistician at the office, stated that borrowing during the first two months of the fiscal year amounted to about 9 billion pounds more than the same period in 2025, noting the increase in spending on debt interest, public services, investment and social benefits during the past month compared to the same month last year, exceeding the increase recorded in tax revenues.
He explained that counting the first two months of the new fiscal year, total borrowing amounted to 46.3 billion pounds, an increase of 8.9 billion pounds over the previous year, and a difference of 7.7 billion pounds above the expectations of the Office for Budget Responsibility.
The Bank of England had left interest rates unchanged at 3.75 percent after predicting that inflation would approach 2 percent, but the rise in fuel prices as a result of the war in the Middle East pushed energy costs to rise, keeping the inflation rate at 2.8 percent last month.
