UK public sector net borrowing (excluding public sector banks) rose to GBP 23.3 billion in May 2026 from GBP 17.9 billion last year, above market expectations of GBP 18.5 billion. This was the second-highest borrowing for any May on record, behind that of 2020, indicating a tight fiscal situation. Public sector spending increased by GBP 9.1 billion year-on-year to GBP 118.0 billion, driven by rising costs of debt interest payments, public service delivery, investment, and benefits. Central government debt interest costs were the highest ever recorded for the month of May. Public sector receipts rose by GBP 3.7 billion to GBP 94.8 billion, supported by higher tax receipts. Public sector net debt excluding public sector banks was equivalent to 95.1% of GDP at the end of May, up 0.4 ppts from a year ago. Borrowing in the FY to May was GBP 46.3 billion, up GBP 8.9 billion from the same period in 2025 and GBP 7.7 billion more than the OBR’s forecast in March before the full impact of the Middle East war were known.