2023.03.2107:26:00UTC+00UK Budget Deficit Widens In February

The UK budget deficit widened to its highest February level due to the substantial spending on energy support schemes, the Office for National Statistics said Tuesday.

Public sector net borrowing excluding banks increased by GBP 9.7 billion from the last year to GBP 16.7 billion in February. This was the highest February borrowing since records began in 1993.

In the financial year-to-February, the public sector borrowed GBP 132.2 billion, which was GBP 15.5 billion more than in the same period last year.

Data showed that the interest payable on central government debt decreased by GBP 1.3 billion to GBP 6.9 billion in February.

Of the GBP 6.9 billion interest payable in February, about GBP 3.4 billion reflected the impact of inflation on the index-linked gilt stock.

The latest forecast from the Office for Budget Responsibility suggested that the public sector could borrow an additional GBP 20.2 billion in March 2023.

At the end of February, public sector net debt was GBP 2,507.3 billion or around 99.2 percent of gross domestic product.