Public sector net borrowing (excluding public sector banks) in the UK decreased to 1.1 billion GBP in July 2025 from 3.4 billion GBP in the same month last year, below market expectations of 2.6 billion GBP. This was the lowest level of borrowing in three years, with inflation having a little impact on debt interest payable, following a large rise affecting last month. Total public sector spending increased by 6.9 billion GBP, amid higher spending on public services, benefits, and debt interest. Meanwhile, total receipts rose by 9.2 billion GBP, largely due to an 8.7 billion GBP increase in central government tax and National Insurance contribution receipts. Borrowing for the financial year to July reached 60 billion GBP, up 6.7 billion GBP from the same four-month period of 2024, marking the third-highest April to July borrowing on record, after 2020 and 2021. Public sector net debt excluding public sector banks was equivalent to 96.1% of GDP at the end of July.