UK borrowing rises to £23.3bn in May, debt interest record

Official figures released on Friday show UK government borrowing surged to £23.3 billion in May, a sharp increase that significantly exceeded forecasts and was driven by record-high debt interest payments for the month. The data highlights the growing strain on public finances from the conflict in the Middle East and emerging political uncertainty.

The Office for National Statistics reported that borrowing was £5.4 billion, or 30.4 percent, higher than in May 2025. The figure was well above the £18.8 billion forecast by most economists and the £17.7 billion projected by the government's fiscal watchdog, the Office for Budget Responsibility. Interest payable on government debt jumped £4.1 billion to £11.7 billion, the highest ever recorded for May, as rising Retail Prices Index inflation increased costs on index-linked bonds.

Tom Davies, a senior ONS statistician, said borrowing in the first two months of the current financial year was nearly £9 billion higher than the same period in 2025. He attributed the increase to higher spending on debt interest, public services, investment, and benefits, which together outweighed increased tax receipts. Cumulative borrowing for April and...