The UK government borrowed £18.3bn in August, more than expected, piling pressure on the chancellor — named by the Guardian as John Healey — as he tries to steady bond markets before next month's budget.
Key facts
- UK public sector net borrowing reached £18.3bn in August, according to the Guardian.
- The figure was higher than expected.
- Borrowing was £2.9bn higher than in August 2025.
- Data was released by the Office for National Statistics on Tuesday.
- The figures come ahead of next month's budget.
The UK government borrowed a higher-than-expected £18.3bn last month, increasing pressure on the chancellor as he attempts to calm jittery bond markets before next month’s budget, according to the Guardian, which named the chancellor as John Healey.
Official figures released by the Office for National Statistics on Tuesday showed that public sector net borrowing — the difference between government spending and income — was £2.9bn higher last month than in August 2025.
Public sector net borrowing is a closely watched measure of the government’s finances, reflecting the gap between what the state spends and what it raises through taxation and other income. A higher figure signals that the government is having to borrow more to cover its costs.
The larger-than-anticipated borrowing figure makes the chancellor’s task of reassuring bond markets more difficult, the Guardian reported. Bond markets, where governments raise money by issuing debt, have been described by the outlet as jittery in the run-up to the budget.
The data arrives with the budget due next month. The Guardian said the chancellor faces the challenge of demonstrating fiscal discipline while responding to market concerns about the state of the public finances.
Why it matters
Government borrowing figures shape the choices a chancellor makes on tax and spending, which directly affect households and businesses. Higher-than-expected borrowing and nervous bond markets can raise the cost of government debt and increase the likelihood of difficult decisions in the budget.
Frequently asked questions
How much did the UK government borrow in August?
The UK government borrowed £18.3bn in August, a higher-than-expected figure, according to Office for National Statistics data reported by the Guardian.
How does August's borrowing compare with last year?
Public sector net borrowing was £2.9bn higher last month than in August 2025.
Why does this matter ahead of the budget?
The higher figure makes Chancellor John Healey's aim of calming jittery bond markets more difficult as he prepares next month's budget.