UK public sector net borrowing (excluding public sector banks) narrowed to GBP 12.6 billion in March 2026 from GBP 14.0 billion in the same month last year, but remained above expectations of GBP 10.4 billion. In the financial year ending March 2026, public sector net borrowing stood at GBP 132.0 billion, GBP 19.8 billion lower than in FYE March 2025 and GBP 0.7 billion below the GBP 132.7 billion forecast by the OBR, marking the lowest level in three years. Total public sector receipts increased to GBP 1,230.8 billion, rising by GBP 92.1 billion from a year earlier, supported by a GBP 87.7 billion (9.1%) jump in tax revenues and National Insurance contributions. Meanwhile, public sector spending rose to GBP 1,362.8 billion, up GBP 72.2 billion, driven by higher costs for public services, benefits, and debt interest. Public sector net debt stood at 93.8% of GDP at the end of March, up 0.6 percentage points from the previous year.