UK public sector net borrowing estimated at £4.9B in July, down by £0.8B from July 2021; public sector net debt was £2.39T at end of July, or 95.5% of GDP: ONS

LONDON , August 19, 2022 (press release) –

How the relationship between UK public sector monthly income and expenditure leads to changes in deficit and debt.

Main points

• Public sector net borrowing excluding public sector banks (PSNB ex) was £4.9 billion in July 2022; £0.8 billion less than in July 2021 but £5.9 billion more than in pre-coronavirus (COVID-19) July 2019, which was in surplus by £0.9 billion.
• Central government current (or day-to-day) expenditure increased compared with July 2021 by £3.4 billion to £76.5 billion, with a £2.3 billion increase in debt interest payable and a £2.8 billion increase in net social benefit payments being partially offset by a £1.5 billion reduction in subsidy payments.
• Central government debt interest payable was £5.8 billion in July 2022, £2.3 billion more than in July 2021 but £13.9 billion less than the record £19.7 billion payable in June 2022; the volatility in interest payable is largely because of the effect of Retail Prices Index (RPI) changes on index-linked gilts.
• Central government receipts were £78.2 billion in July 2022, which was £6.1 billion more than in July 2021; of this, tax receipts were £58.6 billion, which was an increase of £4.6 billion compared with July 2021.
• Self-assessed Income Tax receipts were £9.1 billion in July 2022, which was £0.6 billion more than in July 2021.
• PSNB ex was £55.0 billion in the financial year to July 2022; this was £12.1 billion less than in the same period last year but £32.6 billion more than in the financial year to July 2019, pre-coronavirus pandemic.
• Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was a surplus of £1.7 billion in July 2022, which was £3.6 billion less than the £1.8 billion cash deficit in July 2021; this brought the total to £24.5 billion in the financial year to July 2022.
• Public sector net debt excluding public sector banks (PSND ex) was £2,388.1 billion at the end of July 2022, or around 95.5% of gross domestic product (GDP), which was an increase of £188.4 billion or 1.4 percentage points of GDP compared with July 2021.
• Public sector net debt excluding public sector banks and the Bank of England (PSND ex BoE) was £2,069.6 billion at the end of July 2022, or around 82.8% of GDP, which was an increase of £94.8 billion but a reduction of 1.7 percentage points of GDP compared with July 2021.

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