UK public sector net borrowing in July was £4.3B, an increase of £3.4B from July 2022; public sector net debt at the end of July was £2.58T, or 98.5% of GDP: ONS

Sample article from our Housing & Economy

LONDON , August 22, 2023 (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) in July 2023 was £4.3 billion, £3.4 billion more than in July 2022 and the fifth-highest July borrowing since monthly records began in 1993.
Self-assessed income tax (SA) receipts in July 2023 were £11.8 billion, £2.5 billion more than in July 2022; however, because of the possibility of delayed July payments we recommend considering July and August SA receipts as a whole when making year-on-year comparisons.
PSNB ex in the financial year to July 2023 was £56.6 billion, £13.7 billion more than in the same four-month period last year but £11.3 billion less than the £68.0 billion forecast by the Office for Budget Responsibility (OBR).
Central government net cash requirement (excluding UK Asset Resolution Ltd and Network Rail) was £10.0 billion in July 2023, £10.9 billion below the £20.9 billion forecast by the OBR.
Public sector net debt (PSND ex) was £2,578.9 billion at the end of July 2023 and provisionally estimated at around 98.5% of the UK’s annual gross domestic product (GDP); this is 1.9 percentage points higher than in July 2022 and continuing at levels last seen in the early 1960s.
Excluding the Bank of England, public sector net debt was £2,345.9 billion or around 89.6% of GDP, £233.0 billion (or 8.9 percentage points) lower than the wider measure.
Public sector net worth (PSNW ex) was in deficit by £630.9 billion at the end of July 2023; this compares with a £524.0 billion deficit at the end of July 2022.

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